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STATE OF NORTH CAROLINA 

SECOND REPORT 

OF THE 

UTILITIES COMMISSION 

FOR THE 

BIENNIAL PERIOD, 1937-1938 



COMPILATION FROM RAILROAD RETURNS ARE FOR 
YEARS ENDING DECEMBER 31, 1936 AND 1937 






PRESSES OF 

CHRISTIAN PRINTING COMPANY 

DURHAM, N. C. 






UTILITIES COMMISSION 

STANLEY WINBORNE, Commissioner 

ASSOCIATE COMMISSIONERS 
F. L. Seely, Asheville Frank W. Hanft, Chapel Hill 

R. O. Self, Chief Clerk 

Elsie G. Riddick, Assistant Chief Clerk 

Edgar Womble, Utilities Clerk 

C. H. Noah, Director of R. R. Transportation 

H. M. Nicholson, Asst. Director of R. R. Transportation 

W. G. Womble, Traffic Consultant 

Mary Shaw, Motor Carrier Clerk 

Margaret Smith, Reporter 

Sophia P. Busbee, Secretary 

Mrs. Nancy McKethan, Secretary 

Mrs. Alvarado J. Austin, Secretary 

Julia Combs, Secretary 

J. C. Bowman, Bus Inspector 

Broadus Glover, Bus Inspector 

C. B. Wade, Bus Inspector 



LETTER OF TRANSMITTAL 



October 31, 1938 

His Excellency, Clyde R. Hoey, 
Governor of North Carolina, 
Raleigh, N. C. 
Sir: 

As required by Section 1065, Chapter 21, Consolidated 
Statutes, there is submitted herewith the statistical report of 
the Utilities Commission for the biennium January 1, 1936, to 
December 31, 1937, and such orders as have been issued by the 
Commission since November 1, 1936 to date of this communi- 
cation. 

It is the intention of the Commission to submit a special 
report containing its activities during the present calendar year 
and to make such recommendations as we have found to appear 
expedient for the consideration of yourself and the Legislature. 

Respectfully submitted, 

Stanley Winborne, 
Utilities Commissioner. 

R. O. Self, Chief Clerk. 



GENERAL ORDERS 

INSTALLATION OF UNIFORM CLASSIFICATION OF ACCOUNTS 
AS ADOPTED AND RECOMMENDED BY THE NATIONAL AS- 
SOCIATION OF RAILROADS AND UTILITIES COMMISSIONERS 
AT ATLANTIC CITY IN NOVEMBER, 1936. 

Order (U-14) 
Whereas, on November 10, 1936, the National Association of Rail- 
road and Utilities Commissioners in convention at Atlantic City 
adopted the recommendations of the Executive Committee on the re- 
port of its Committee on Statistics and Accounts in which a uniform 
system of accounts for electric utilities and recommended the system 
to the State Commissions: 

The system of accounts had been prepared jointly by the Com- 
mittee on Accounts of the National Association of Railroad and Util- 
ities Commissioners and the accounting department of the Federal 
Power Commission. The association, at the meeting referred to above, 
made some modifications which were recommended by the Committee. 
The Federal Power Commission adopted this system with same modi- 
fications and all electric utilities now under the jurisdiction of the 
said Federal Power Commission are now required to keep their ac- 
counts in accordance therewith. 

The North Carolina Utilities Commission has a system of accounts 
in effect which has proved highly satisfactory for its purposes. The 
Statistics and Report Forms generally of the National Association is 
no improvement over our present system and because of the fact that 
our Commission is primarily a rate making body, it may be that even 
with the use of the new system, some additional statistics may be 
required in our annual report form that are different from that pro- 
vided by the uniform system proposed. 

Under our present system the classification of electic utilities are 
subdivided as follows : 
Classification Description 

A Utilities operating electric properties having annual 

operating revenues exceeding $250,000. 
A Utilities operating electric and gas properties hav- 

ing annual operating revenues exceeding $250,000. 
A Utilities operating electric, gas, and street railway 

properties having annual operating revenues exceed- 
ing $250,000. 
A Utilities operating electric railways (except street 

railways ) . 
B Utilities operating electric properties having annual 

operating revenues of $50,000, but not over $250,000. 
C Utilities operating electric properties having annual 

operating revenues exceeding $10,000, but not over 
$50,000. 
D Utilities operating electric properties having annual 

revenues of $10,000, or less. 



6 N. C. Utilities Commission 

The proposed uniform system, which we have under consideration, 
divides the electric utilities into the following classes: 
Classification of Utilities: 

"Class A. Utilities having either (1) annual electric operating 
revenues of $750,000 or more, or (2) the original cost 
of whose electric plant amounts to $4,000,000 or more. 
Such utilities shall keep all the accounts prescribed 
herein which are applicable to their operations." 

"Class B. Utilities having annual electric operating revenues of 
more than $250,000 but less than $750,000 and the 
original cost of whose electric plant amounts to less 
than $4,000,000. Such utilities shall keep all the ac- 
counts prescribed herein which are applicable to their 
operations, except those operating expense accounts in 
which the letter B does not appear in the prefix. 
"The class to which any utility belongs shall be deter- 
mined by the average of its annual electric operating 
revenues for the 3 years next preceding the effective 
date of this system of accounts; provided, however, 
that if the original cost of electric plant amounts to 
$4,000,000 at the end of the year immediately preced- 
ing the effective date of this system of accounts, such 
utility shall be classified as a class A utility. If at 
the end of any calendar year following the effective 
date of this system of accounts the annual electric 
operating revenues of the utility for the 3 years ended 
on that date shall average $750,000, or if the original 
cost of its electric plant shall amount to $4,000,000 at 
the end of any such following year then such utility 
shall be classified as a class A utility for the next suc- 
ceeding year." 

"Any utility may at its option adopt the system of ac- 
counts prescribed herein for class A utilities." 

It is, THEREFORE ORDERED that, for the purpose of accounting elec- 
tric utilities under the jurisdiction of this Commission are hereby 
divided into three classes as follows: 

Class A. Utilities having either (1) annual electric operating 

revenues of $750,000 or more, or (2) the original cost 

of whose electric plant amounts to $4,000,000 or more. 

Class B. Utilities having annual electric operating revenues of 

more than $250,000, but less than $750,000 and the 

original cost of whose electric plant amounts to less 

than $4,000,000. 

Class C. Utilities having an annual income of less than $250,000. 

That the class to which any utility belongs shall be determined in 

the manner set forth above under proposed classification, with the 

addition that the determination of Class C utilities shall be determined 

on the basis of the revenue for the previous year. 

It is FURTHER ORDERED that the Uniform system of accounts adopted 
on November 10, 1936 by the National Association of Railroads and 
Utilities Commissioners and the Federal Power Commission for Class 
A and B utilities, except as to segregation of classes of energy sold 
and statistical data, which shall be that required by the Annual Re- 
port Forms of this Commission, is hereby adopted for all electric 
utilities subject to that classification (A and B) under the jurisdiction 
of this Commission and that all such electric utilities shall install and 



General Orders 7 

maintain the said system of accounts as of January 1, 1937, and con- 
tinuously until otherwise ordered by this Commission. 

It is FURTHER ORDERED that this Order shall supersede all other or- 
ders heretofore made with respect to maintaining accounts of such 
class A and B utilities; and it is further ordered that all class C electric 
utilities now reporting to this Commission under its order of November 
18, 1931, shall continue to keep their accounts and make their reports 
as provided in said order of November 18, 1931, until such time as any 
such utility may elect to substitute the uniform system now used by 
notifying this Commission that it has elected to do so; or until further 
order. 

This the 1st day of May, 1937. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

M. V. C. Circular No. 55, 
May 5, 1937. 

To All Motor Vehicle Carriers: 

This is to advise that House Bill No. 583, Section 11, passed at the 
recent 1937 Session of the Legislature provided for the collection of 
the following fees: 

"Sec. 11. Fees. Each applicant for a certificate shall deposit 
with the Commissioner as a filing fee the sum of $10.00 at the 
time of application, and fee of $1.00 for each motor vehicle added 
thereafter; and for annual re-registration for the purchase of 
license, number plates, or tags, a fee of 25 cents for each motor 
vehicle so re-registered; and for renewal of certificate, a fee of 
25 cents for each motor vehicle being operated under the cer- 
tificate at the time application for renewal is filed: Provided, that 
brokers and forwarders not applying for nor holding certificates 
for the operation of motor vehicles shall deposit a filing fee of 
$25.00 each at the time of application and $25.00 per annum 
thereafter in addition to any other tax or fee provided by law. 
Such fees, when received by the Commissioner, shall be paid 
forthwith to the State Treasurer and credited to the Highway 
fund for enforcement purposes. This section shall be in force 
from and after the ratification of this Act." 

A careful reading of and compliance with the above quoted section 
will prohibit delays in securing authority for tags for additional 
vehicles. 

Respectfully, 

R. O. Self, Chief Clerk and 

Director Motor Vehicle Transportation. 



8 N. C. Utilities Commission 

M. V. Circular No. 56, 
May 6, 1937. 

To All Motor Vehicle Passenger Carriers: 

We are designating the week beginning May 16th, as Sanitary Bus 
Station Week and will expect that the toilets, rest rooms and stations 
be put in the best sanitary condition possible. The following week 
all stations will be inspected. 

It shall be the duty of each carrier to instruct each station agent 
to proceed with this sanitation work and charge the expense to the 
carriers using such stations. 

In addition to many complaints which we have had from the 
traveling public, members of this Commission have found conditions 
in many of our stations to be deplorable. 
Respectfully, 

R. O. Self, Chief Clerk and 

Director Motor Vehicle Transportation. 

M. V. C. Circular No. 57, 
November 15, 1937. 

To All Motor Vehicle Passenger and Freight Carriers: 

License tags for the year 1938 will be ready for distribution on 
December 1, 1937, and Description of Equipment forms are enclosed 
for your use in making application to this office for necessary authority 
to purchase them. We are cooperating with the Department of Rev- 
enue in order to get your tags out before the rush. There is no rea- 
son why franchise carriers should have to come to Raleigh and stand 
in line day after day in order to get tags. 

Please prepare your Description of Equipment in quadruplicate 
form in order that you may secure your 1938 tags without unneces- 
sary delay. When description has been filed with this office certificate 
will be issued to the Commissioner of Revenue, authorizing him to sell 
tags for use on such vehicles as are completely and accurately de- 
scribed and for which we have necessary public liability and prop- 
erty damage insurance on file. Motor freight carriers are directed to 
furnish description for trailers as separate units. 

The new Motor Vehicle Carrier Act provides for the collection of 
a fee of twenty-five cents for each motor vehicle and trailer regis- 
tered; therefore, make your check for this fee payable to the North 
Carolina Utilities Commission. 

Passenger carriers should compute fees to be paid for license tags 
at sixty cents per hundred pounds on the weight of the vehicle empty, 
as shown in Item 5 of Description of Equipment; intrastate express 
and freight carriers should compute fees for intrastate trucks and 
trailers at the rate of sixty cents, and interstate carriers at thirty cents 
per hundred pounds for trucks and trailers based on manufacturer's 
gross weight plus manufacturer's rated carrying capacity, as shown 
in Item 5 of Description of Equipment for each vehicle. For your 



General Orders 9 

information, the law states: "Semi-trailers licensed for use in connec- 
tion with a truck-tractor, shall in no case be licensed for less gross 
weight capacity than the truck-tractor with which it is to be oper- 
ated." All checks for tag fees should be made payable to the Com- 
missioner of Revenue. It is our information that the Department of 
Revenue will require evidence of title for each vehicle before selling 
tag (trailers excepted). (See Item 9 on Description of Equipment.) 
In the past the Department of Revenue has been confused by 
franchise carriers operating more than one class of operation; there- 
fore, if you desire to operate any vehicles for hire or in private busi- 
ness during the coming year, please advise reasons for such additional 
operations with the number of vehicles which you contemplate using 
in these classifications as it is our intention to prohibit the operation 
of two or more classes by the same operator until good cause is shown. 

Respectfully, 

R. O. Self, Chief Clerk. 

IN RE: ESTABLISHMENT OF UNION STATIONS FOR THE USE 
OF MOTOR VEHICLE PASSENGER CARRIERS UNDER PROVI- 
SIONS CHAPTER 50, PUBLIC LAWS OF 1925, AND 1927 AND 
AMENDMENTS THERETO. 

Order Amending Commission's Order Dated June 12, 1935 
Whereas, the Commission issued an order dated the 12th day of 
June, 1925 which provides in part as follows: 

"That, to the end that the location of such stations and the 
expenses of operation may be determined and agreed upon, the 
motor vehicle carriers operating to, from or through each of the 
cities hereinbefore named, shall meet on or before the first day 
of July, 1925, and select and obtain a location for said union 
stations; and shall employ a manager for each union station, who 
shall not be financially interested in either of the carriers con- 
cerned; fix his compensation; and prorate the expenses of main- 
taining the union station upon an equitable basis; and, failing to 
agree, the basis shall be upon the number of motor vehicles of 
each carrier using the station." 
This provision was later amended to use schedules for vehicles as 
the basis. 

And whereas, the said order referred to above was amended on 
January 28, 1926 as follows: 

"That section two of the Commission's order of June 12, 1925 

be and it is hereby amended by adding at the end of sub-section 

two the following: 'Provided that in determining the equitable 

basis, each carrier shall have one vote for each departing schedule 

tmade or approved by the Commission for each carrier'." 

The last quoted provision above has remained in force since Feb- 
ruary 1, 1926 and the several union bus stations in the State have 
been operated on that basis. On August 25, 1938, at a meeting called 
by the Commissioner, at which all the passenger carriers operating 
under intrastate franchises in the State were present, it was unani- 
mously voted, as permitted under the order of the 12th day of June, 
1925 and amendments thereto, to prorate the current monthly ex- 



10 N. C. Utilities Commission 

penses of such stations on the basis of the percentage of that month's 
expenses to the total average monthly ticket sales for the immediate 
previous month, and it was agreed that an order would be issued 
promulgating and confirming said basis, therefore it is 

Ordered that from and after October 1, 1938, the expenses of such 
stations shall be borne by the carriers on the basis of the percentage 
of the ratio of their ticket sales to the total expenses as provided 
above, and it is 

Further ordered, that the several carriers holding franchises 
operating into and out of said stations shall conform to this manner 
of defraying the expenses incurred at such stations, and it is 

Further ordered, that the Union Station Order of June 12, 1925, 
is hereby amended to conform to the provisions set forth herein and 
shall be rewritten embracing all amendments since its original issue 
not inconsistent with this order and distributed to the several Union 
Station Agents and carriers. 

This October 1st, 1938. 

Stanley Winborne, 

Utilities Commissioner. 

By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
(SEAL) 



DECISIONS AND ADJUSTMENTS OF COMPLAINTS 
Electric Light and Power Companies 

APPLICATION CITY OF ALBEMARLE FOR CERTIFICATE OF 
CONVENIENCE AND NECESSITY TO CONSTRUCT ELECTRIC 
LINES TO MORROW MOUNTAIN STATE PARK. 

Order 

This cause arises upon the petition of the City of Albemarle for 
Certificate of Convenience and Necessity to construct electric lines from 
the said city to Morrow Mountain State Park. 

Hearing was held April 12, 1937 at 11:00 o'clock, a.m. The Town of 
Albemarle was represented by Mr. George S. Moore, Superintendent of 
the Water & Light Department, and Mr. W. T. Huckaby, Jr., Member 
of the Town Board. The Central Electric & Telephone Company, 
opposing the application, was represented by Mr. L. D. Densmore, 
Manager, of Charlottesville, Virginia, and Mr. Gordon Kennedy, Group 
Manager of said Company, located at Albemarle. 

It appears from the evidence that the Morrow Mountain State Park 
is located a distance of about twelve (12) or fourteen (14) miles from 
the City of Albemarle and is State owned, and that the city and other 
Governmental units have spent money developing the park and it 
becomes necessary to have lights and power there for purposes of 
recreational development; and since the park is an adjunct to the city 
for recreational activities, the city became interested in extending its 
light service to that section, and Mr. Moore was of the opinion that if 
the city did this without loss it would have to have authority to take on 
customers between the park and the city. This caused the Central 
Electric & Telephone Company to oppose the petition because it was 
placed in evidence by Mr. Densmore that without the privilege of serv- 
ing customers between the town and the park, the park service could 
not be extended without considerable loss, which would probably 
necessitate considerably higher rates at the park than at other points 
on the line or in Albemarle. It was also in evidence that without the 
privilege to serve customers between the city and the park, the park 
service might not be remunerative and the respondent's witness was 
asked if the project was not more or less a civic adjunct to the Town of 
Albemarle, to which Mr. Densmore answered that he did not know. 
Mr. Moore stated that he would say it was more a civic adjunct to 
Stanly County, of which Albemarle is the largest part financially speak- 
ing. Thereupon, Mr. Moore was asked if anybody had to take a loss in 
extending the service, could the town not afford the loss better than 
any other party interested, which Mr. Moore answered in the affirm- 
ative. 

The area of competition seems to be located outside the city beyond 
the lines of the Central Electric & Telephone Company for a distance 
of about one mile and a half and a number of prospective customers 
are expected to want service along that line in the mile and a half dis- 
tance where competition is likely to arise because of the lines parallel- 



12 N. C. Utilities Commission 

ing the same road. The Central Electric & Telephone Company's wit- 
nesses testified that anyone who expected to make an investment at 
the Morrow Mountain State Park would have to be very careful about 
what manner of service was offered in order to make it self-sustaining, 
and Mr. Moore thought that in order to give the service at the park and 
make it self-sustaining, that the authority extending the service to the 
park would have to have the authority to pick up a few customers 
between the park and the town. Witness Densmore stated that people 
within the mile and a half on the Troy road, where competition is 
likely to arise, have for some time been interested in electric light 
service; that they have approached the town and the Central Electric 
& Telephone Company for service; that the road to the park has been 
widened and otherwise improved and that since that work has been 
done, several houses had been built along the way. Mr. Densmore fur- 
ther stated that he had a petition from eight (8) families along the 
proposed route for electric service. The City Superintendent stated 
that he did not wish to take any customers from the Central Electric 
& Telephone Company and would probably be called upon to serve 
only those customers on the same side of the road where his line will 
run, and that the Central Electric & Telephone Company can serve 
customers on its side of the road, if and when it is called upon. 

Evidence was presented to the effect that the city had made appli- 
cation to the Rural Electrification Authority for a Federal loan for this 
purpose but stated that it was in ample financial condition to build a 
line, even if the loan were refused. It was also in evidence that a num- 
ber of customers out in that vicinity had desired service from the 
Central Electric & Telephone Company for some time without success 
and since the application presents all the evidence of a necessary proj- 
ect, it is thought that the short distance it is proposed to parallel after 
the construction under this application should not be permitted to alter 
or prohibit this construction. 

The area of supposed competition is from the intersection of the 
Baden Highway with Highway No. 74, one and one-half miles east, 
where neither party now has service lines. The Central Electric & 
Telephone Company presented evidence to the effect that it had sur- 
veyed this line and had contacted prospective customers, but the city 
has done the same thing, and to refuse to grant the petition of the city 
in consideration of the small amount of work expenditure by the 
private company would probably deprive the Park and intervening 
territory of service, which would be an irreparable injury to that 
section. Wherefore, it is 

Ordered that the petition be granted. 
This, the 11th day of May, 1937. 

Stanley Winborne. 

Commissioner. 
By order of the Commissioner: 
R. O. Self, Chief Clerk. 
Docket No. 938. 



Decisions and Adjustments of Complaints 13 

APPLICATION CALDWELL COUNTY ELECTRIC MEMBERSHIP 
CORPORATION FOR A CERTIFICATE OF PUBLIC CONVEN- 
IENCE AND NECESSITY TO CONSTRUCT RURAL ELECTRIC 
DISTRIBUTION SYSTEM IN CALDWELL COUNTY. 

Order 

Now COMES before the Utilities Commission Hunter Martin, Es- 
quire, of Lenoir, North Carolina, attorney for the Caldwell County 
Electric Membership Corporation, and voluntarily, in writing, with- 
draws the application filed in this cause on the 22nd day of September, 
1936, by the Caldwell County Electric Membership Corporation, ask- 
ing for a Certificate of Public Convenience and Necessity for the 
construction of rural electric distribution system in Caldwell County; 

Wherefore it is ordered that this cause be dismissed as of volun- 
tary non-suit. 

This the 11th day of January, 1937. 

(S) Stanley Winborne, 

Commissioner. 
Docket No. 839 

IN THE MATTER OF CAROLINA POWER & LIGHT COMPANY'S 
RATE CLASSIFICATION 3, LARGE TEXTILE MILLS, SCHEDULE 
P-7. 

Order 

It is hereby ordered, that the portion of Carolina Power & Light 
Company's Rate Classification 3, Large Textile Mills, Schedule P-7, 
which reads as follows: 

"Superseding Schedule P-97 with respect to new contracts and 
effective for contracts entered into on and after January 26, 1937" 
be stricken out and that there be and is hereby inserted in lieu thereof 
the following: 

"Superseding Schedule P-97 and effective on bills rendered on 
and after January 26, 1937." 
It is further ordered That any customer heretofore served on 
Schedule P-97 may elect to have billing for service continued on Sched- 
ule P-97 until the expiration of such customer's existing contract, or 
until such earlier date as customer may request billing on Schedule P-7. 
This January 16th, 1937. 

Stanley Winborne, 

North Carolina Utilities Commissioner. 
Docket No. 917. 

RATES FOR ELECTRIC SERVICE TO RURAL CUSTOMERS IN 
CASWELL COUNTY FORMERLY SERVED BY CASOLINA UTIL- 
ITIES, INCORPORATED. 

Order 

It appearing to the Commission that the Carolina Power & Light 

Company has acquired certain rural distribution lines, approximately 

14.405 miles in length, in Caswell County, North Carolina, from Caso- 

lina Utilities, Incorporated, and has begun the rendering of service over 



14 N. C. Utilities Commission 

said distribution lines to the customers who have heretofore received 
service from Casolina Utilities, Incorporated; and it further appearing 
that some of the customers so receiving service desire to continue re- 
ceiving same at the rates heretofore charged by Casolina Utilities, 
Incorporated, and that Carolina Power & Light Company is willing to 
continue said rates as alternate rates for the service, provided that any 
customer electing to take service under the Carolina Power & Light 
Company's applicable rates shall not thereafter be permitted to take 
service under said alternate rate: 

It is, THEREFORE^ ORDERED AND ADJUDGED that Carolina Power & 
Light Company is hereby authorized to render service over said rural 
distribution lines at the rates formerly charged by Casolina Utilities, 
Incorporated; said rates shall be alternate to the existing rates of Caro- 
lina Power & Light Company which are applicable to service over said 
line. Any customer receiving service over said line and electing to be 
billed for the same in accordance with the existing rates of Carolina 
Power & Light Company applicable thereto shall not thereafter have 
the right to claim service and billing in accordance with said alter- 
nate rate. 

This order shall be effective upon bills rendered for service next 
after the date of this order. 

This the 13th day of April, 1938. 

(Signed) Stanley Winborne, 

Attest: Utilities Commissioner. 

R. O. Self, Clerk. 

Docket No. 1086. 

PETITION OF THE CAROLINA POWER 8c LIGHT COMPANY, THE 
ASHEVILLE CITY SCHOOL BOARD AND ASHEVILLE COUNCIL 
OF THE PARENT-TEACHER ASSOCIATION FOR THREE AND 
ONE-HALF (31/2C) ONE-WAY BUS FARE FOR THE TRANSPOR- 
TATION OF STUDENTS IN THE PUBLIC GRADED AND HIGH 
SCHOOLS IN THE CITY OF ASHEVILLE. 

Order 
This matter comes before the Commission upon the joint petition 
of the Carolina Power & Light Co., the City of Asheville School Board 
and the Asheville Council of Parent Teacher Association, asking that 
the Commission approve a three and one-half cents (SVzc) one-way 
bus fare by the Carolina Power & Light Co. for the transportation 
of students in the public graded and high schools of the City of Ashe- 
ville, with certain special school buses to be operated to and from Lee 
H. Edwards High School and Hall Fletcher High School, as provided 
in said resolution, beginning with the opening of the schools in the 
fall of 1938; the petition also being approved by the City Council of 
Asheville. 

In presenting said matter to the Commission, it was made to appear 
both by oral statements and by resolution of the City Council of Ashe- 
ville that at the present time there exists two bus fares for one-way 
transportation of students to and from the schools in said City, one fare 
being two and one-half cents (2y2c) and the other five cents (5c). 



Decisions and Adjustments of Complaints 15 

It is further presented in said resolution that in the opinion of 
said Boards and the City Council that it is in the public interest to 
have a three and one-half cents (SVzc) one-way fare in lieu of the 
present two fares. 

Upon a consideration of the resolution filed with the Commission 
and the statements made at the time the matter was considered, it is 
hereby ordered that the Carolina Power & Light Co. is hereby author- 
ized and directed to put into effect a three and one-half cents (3y2c) 
one-way bus fare for students to and from the public graded and high 
schools in the City of Asheville, as outlined and approved in the reso- 
lution of the City of Asheville on file with the Commission. 

It is further ordered, that said three and one-half cents (SVz) 
fare for students shall be effective from and after this date. 

This the 3rd day of September, 1938. 

Stanley Winborne, 

Docket No. 1406. Utilities Commissioner. 

APPLICATION OF CENTRAL ELECTRIC & TELEPHONE COM- 
PANY, AS VENDOR, AND DUKE POWER COMPANY, AS VEN- 
DEE, FOR APPROVAL OF THE TRANSFER OF CERTAIN ELEC- 
TRIC PROPERTY LOCATED IN STANLEY COUNTY, NORTH 

CAROLINA. 

Order 

The above proceedings having come on to be heard, and the Com- 
mission having considered the application filed herein and having 
considered all the facts in connection therewith, the Commission is 
satisfied and finds: 

1. The statements made in the applications are correct. 

2. The public convenience and necessity requires the acquisition of 
the public utility property described in the application now under 
ownership of Central Electric & Telephone Company by Duke Power 
Company. 

3. That a certificate of Public Convenience and Necessity as to such 
acquisition should be granted to Duke Power Company. Now, there- 
fore, it is 

Ordered by the Commission that Duke Power Company is hereby 
permitted, authorized and empowered to acquire that certain 2300 
volt single phase electric transmission line and distribution system, 
including the customers connected thereon, located between New Lon- 
don and Misenheimer in Stanley County, North Carolina, from Central 
Electric & Telephone Company. It is further 

Ordered that the Public Convenience and Necessity requires such 
acquisition and a certificate of Public Convenience and Necessity as 
to such acquisition is hereby granted to Duke Power Company. 

This 8th day of March, 1938. 

Stanley Winborne, 

By order of the Commissioner: Com,missioner. 

R. O. Self, Chief Clerk. 

Docket No. 1189. 



16 N. C. Utilities Commission 

PETITION OF W. DAVENPORT, TRADING AND DOING BUSINESS 
UNDER THE STYLE AND NAME OF THE DAVENPORT POWER 
COMPANY, EDGECOMBE COUNTY, FOR A CERTIFICATE OF 
CONVENIENCE AND NECESSITY, UNDEY CHAPTER 455, PUB- 
LIC LAWS 1931, TO OPERATE ELECTRIC UTILITY. 

Order 

This is the petition of W. Davenport for a Certificate of Public 
Convenience and Necessity to construct certain electric power lines 
in the County of Edgecombe under the name of the Davenport Power 
& Light Company, and was heard by the Commission on November 
30, 1937. Petitioner was represented by Mr. D. C. Sessoms, Attorney 
at Law, Pinetops, North Carolina, and no opposition was present. 

The applicant owns and operates approximately twenty-five (25) 
miles of electric power line, sixteen (16) miles of said line being in 
No. 9 Township of Edgecombe County, out from the Town of Maccles- 
field, in the Webb Lake section of said township, five (5) miles of said 
line being in No. 10 Township of said county running out from Pine- 
tops to St. Lewis along the State Highway No. 42, and four (4) miles 
of said line being in No. 8 Township and No. 10 Township of said 
county running out from the Town of Pinetops to Old Sparta; and 
said electric light and power lines serve ninety-two (92) customers 
in these communities adequately and satisfactorily; and that petitioner 
spent approximately $12,500.00 in constructing said lines and has 
operated and maintained said lines since the same were constructed 
at a total cost of approximately $850.00; and that the people in 
adjacent communities desire service to be extended to them. 

Therefore, petitioner in this case is applying for a Certificate 
of Public Convenience and Necessity not only to operate the present 
line in a legal manner, but to put himself in a position to make ex- 
tensions legally. 

From the evidence presented it appears that the operation of the 
petitioner is in the interest of public convenience and necessity and 
is necessary to the welfare of the Communities. Therefore, it is 

Ordered that the petition be granted. 

(Signed) Stanley Winborne, 

Commissioner. 

This January 15, 1938. 

By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1061. 

PETITION OF THE DILLSBORO AND SYLVA ELECTRIC LIGHT 
COMPANY FOR AUTHORITY TO INCLUDE TERMS OF PAY- 
MENT PROVISION IN ITS VARIOUS SCHEDULES. 

Order 
This matter came before the Commission upon petition of the 
Dillsboro and Sylva Electric Light Company. 

In its petition the Company asked that, in order to prevent de- 



NorMi CaioliM SfaTe Ubrary 



Decisions and Adjustments of Complaints 17 

linquencies in payment of bills, it be permitted to include in its vari- 
ous schedules of rates the following "Terms of Payment" provision: 

"The above are net rates and apply only in case a bill for 
service furnished under this schedule is paid at the office of the 
Company on or before the 20th day after its date. If not so 
paid the gross rates, which are the above rates plus 5 per cent, 
then apply." 
Upon the date set for hearings no one appeared in opposition to 
the request and in view of the fact that there is nothing incom- 
patible in rate making with such a provision, it is therefore 

Ordered that authority is hereby granted to the Dillsboro and 
Sylva Electric Light Company to fine new schedules of rates including 
the Terms of Payment provision set forth above in the schedules so 
filed, provided that no other than the Term of Payment change be 
made in the provisions of the schedules now in effect. 

This 15th day of March, 1938. 

Stanley Winborne, 

Commissioner. 
Attest : 

R. O. Self, Chief Clerk. 
Docket No. 1223. 

IN THE MATTER OF THE SUBSTITUTION OF A MOTOR BUS 
ROUTE IN PLACE OF THE ELECTRIC STREET RAILWAY LINES 
NOW BEING OPERATED BY DUKE POWER COMPANY ON THE 
PLAZA AND CENTRAL AVENUE IN THE CITY OF CHARLOTTE. 

Order 

Upon considering the petition of Duke Power Company filed in 
the above entitled matter with the North Carolina Utilities Commis- 
sioner on August 6th, 1937, it is hereby ordered that a public hear- 
ing on said petition be held by said Commissioner at his office in the 
State Department Building at the corner of Edenton and Salisbury 
Streets, in the City of Raleigh, at eleven o'clock, A.M., on August 23rd, 
1937, and that notice of said hearing be given to the public by pub- 
lication of the attached notice in three consecutive issues of the Char- 
lotte Observer and of the Charlotte News, newspapers regularly pub- 
lished in the City of Charlotte, publication of notice to begin at least 
ten (10) days before the date of said hearing, and the petitioner to 
pay the cost of said publication. 

This the 6th day of August, 1937. 



Stanley Winborne, 

Utilities Commissioner. 



By order of the Commissioner: 
R. O. Self, Chief Clerk. 



18 N. C. Utilities Commission 

NOTICE OF HEARING UPON PETITION FILED BY DUKE POWER 
COMPANY WITH NORTH CAROLINA UTILITIES COMMISSION- 
ER TO SUBSTITUTE A MOTOR BUS ROUTE IN PLACE OF 
PARTS OF THE ELECTRIC STREET RAILWAY LINE NOW BE- 
ING OPERATED BY DUKE POWER COMPANY ON CENTRAL 
AVENUE AND THE PLAZA IN THE CITY OF CHARLOTTE. 

To Whom It May Concern: 

Notice is hereby given that Duke Power Company, on August 6th, 
1937, filed with the North Carolina Utilities Commissioner a petition 
requesting that said Company be authorized to abandon the following 
street railway line now being operated by it in the City of Charlotte: 

The line sometimes known as the "Plaza Line," extending 
from the intersection of Central Avenue and Hawthorne Lane in 
an easterly direction with Central Avenue to the Plaza; thence 
in a northerly direction with the Plaza to the end of the line at 
Mecklenburg Avenue; 
and to substitute in place thereof a motor bus route as follows: 

Extending from the intersection of Wilkes Place and West 
Trade Street, along Trade Street in an easterly direction to Mc- 
Dowell Street; thence along McDowell Street in a northerly direc- 
tion to Seventh Street; thence along Seventh Street in an easterly 
direction to Hawthorne Lane; thence along Hawthorne Lane in a 
northerly direction to Central Avenue; thence along Central 
Avenue in an easterly direction to Club Road; thence along Club 
Road in a northerly direction to Belvedere Avenue; thence along 
Belvedere Avenue in a westerly direction to the Plaza; thence 
along the Plaza in a northerly direction to Mecklenburg Avenue; 
thence returning along the Plaza and in a southerly direction to 
Central Avenue; thence returning along Central Avenue, Haw- 
thorne Lane, Seventh Street, McDowell Street and Trade Street 
to Graham Street; thence along Graham Street in a northerly 
direction to Fifth Street; thence along Fifth Street in a westerly 
direction to Wilkes Place; thence along Wilkes Place to the 

BEGINNING. 

Further notice is hereby given that the North Carolina Utilities 
Commissioner will hold a public hearing on said petition at his office 
in the State Department Building at the corner of Edenton and Salis- 
bury Streets in the City of Raleigh, at eleven o'clock, A.M. on the 23rd 
of August, 1937, at which time the public or any member thereof will 
be given an opportunity to be heard in favor of or against the grant- 
ing of said petition. 

This the 6th day of August, 1937. 

By order of the Utilities Commissioner: 

R. O. Self, Chief Clerk. 

Docket No. 1064. 

IN THE MATTER OF THE SUBSTITUTION OF A MOTOR BUS 
ROUTE IN PLACE OF THE ELECTRIC STREET RAILWAY LINES 
NOW BEING OPERATED BY DUKE POWER COMPANY ON THE 
PLAZA AND CENTRAL AVENUE IN THE CITY OF CHARLOTTE. 

Order 
This cause coming on to be heard before the Utilities Commission 
of the State of North Carolina, and being heard at eleven o'clock, 



Decisions and Adjustments of Complaints 19 

A.M., on August 23rd, 1937, the Commission finds the following facts: 

1. The Duke Power Company, a public service corporation, duly 
filed with the Commission its petition in the above entitled matter on 
August 6th, 1937, and the Commission on said date duly made and 
entered its order, directing that a public hearing on said petition be 
held at the office of the Commission in the State Department Building 
at the corner of Edenton and Salisbury Streets, in the City of Raleigh, 
at eleven o'clock A. M., on the 23rd day of August, 1937, and that 
notice of said hearing be given to the public by publication in three 
(3) consecutive issues of the Charlotte Observer and of the Charlotte 
News, newspapers regularly published in the City of Charlotte. Pur- 
suant to said order, notice of said hearing was duly published in the 
Charlotte Observer on August TOth, 11th and 12th, and in the Charlotte 
News on August 9th, 10th and 11th, 1937. 

2. The petitioner, Duke Power Company, now owns and operates, 
and for a number of years it and its predecessor. Southern Public 
Utilities Company, has owned and operated the street railway system 
in the City of Charlotte under a franchise from said City. One of the 
lines of street railway owned and operated by petitioner in said City 
is sometimes known as the "Plaza Line," and extends from the inter- 
section of Central Avenue and Hawthorne Lane in an easterly direc- 
tion with Central Avenue to the Plaza; thence in a northerly direction 
with the Plaza to the end of the line at Mecklenburg Avenue. 

3. The City Council of the City of Charlotte, at a regular meeting 
of said Council on the 28th day of July, 1937, adopted a resolution 
authorizing petitioner to abandon the street railway line sometimes 
known as the "Plaza Line," and being the line hereinabove referred 
to and described, and by said resolution authorized said Duke Power 
Company to substitute in the place of said street railway line the fol- 
lowing bus route, to-wit: 

Extending from the intersection of Wilkes Place and West 
Trade Street, along Trade Street in an easterly direction to Mc- 
Dowell Street; thence along McDowell Street in a northerly direc- 
tion to Seventh Street; thence along Seventh Street in an easterly 
direction to Hawthorne Lane; thence along Hawthorne Lane in a 
northerly direction to Central Avenue; thence along Central 
Avenue in an easterly direction to Club Road; thence along Club 
Road in a northerly direction to Belvedere Avenue; thence along 
Belvedere Avenue in a westerly direction to the Plaza; thence 
along the Plaza in a northerly direction to Mecklenburg Avenue; 
thence returning along the Plaza and in a southerly direction to 
Central Avenue; thence returning along Central Avenue, Haw- 
thorne Lane, Seventh Street, McDowell Street and Trade Street 
to Graham Street; thence along Graham Street in a northerly 
direction to Fifth Street; thence along Fifth Street in a westerly 
direction to Wilkes Place; thence along Wilkes Place to the 

BEGINNING. 

4. The abandonment of said street railway line and the substitution 
in place thereof of the motor bus route hereinbefore described will 
materially improve the transportation system of the entire City of 
Charlotte, and will materially improve and extend said system in 
the section of the City along and near the Plaza, and will be in the 



20 N. C. Utilities Commission 

interest of public convenience; and the operation of said motor bus 
route after the abandonment of said street railway line will be a pub- 
lic necessity. 

5. No objection was filed with the Commission by any member of 
the public or by any other party, to the abandonment of said street 
railway line and the establishment of said motor bus route in place 
of same. 

It is, therefore, ordered that the petitioner, Duke Power Com- 
pany, be, and it hereby is, authorized to abandon the street railway 
line sometimes known as the "Plaza Line" hereinabove set out and 
described, and to substitute in place of said street railway line the bus 
route hereinabove set out and described, which bus route is hereby 
established as a bus route and is to be operated as a part of the trans- 
portation system of the petitioner in the City of Charlotte. 

It is further ordered that petitioner be and it hereby is granted 
a certificate of public convenience and necessity for the operation of 
said motor bus route. 

By order of the Utilities Commission of the State of North 
Carolina. 

This the 23rd day of August, 1937. 

Stanley Winborne, 

Atttest: Utilities Commissioner. 

R. O. Self, Chief Clerk. 

Docket No. 1064. 

IN THE MATTER OF THE SUBSTITUTION OF MOTOR BUSES IN 
PLACE OF THE ELECTRIC STREET RAILWAY LINES NOW BE- 
ING OPERATED WITHIN AND OUTSIDE OF THE CITY OF 

CHARLOTTE. r^„^^„ 

Order 

This cause coming on to be heard before the Utilities Commission 
of the State of North Carolina, and being heard at 11 o'clock A.M., 
on November 15th, 1937, and petitioners having introduced evidence 
in support of their petition, the Commission finds the following facts: 

1. The City of Charlotte and Duke Power Company duly filed 
with the Commission their verified petition in the above entitled 
matter on October 28th, 1937, and the Commission on said date duly 
made and entered its order directing that a public hearing on said 
petition be held at the office of the Commission in the State Depart- 
ment Building at the corner of Edenton and Salisbury Streets in the 
City of Raleigh, at 11 o'clock, A.M., on the 15th day of November, 
1937, and that notice of said hearing be given to the public and to all 
whom it might concern, by publication in three (3) consecutive issues 
of the Charlotte Observer and the Charlotte News, daily newspapers 
regularly published in the City of Charlotte and having a general 
circulation in the City and in the surrounding territory. Pursuant 
to said Order notice of said hearing was duly published in the 
Charlotte Observe on October 30th and 31st, and November 1st, 1937, 
and in the Charlotte News on October 30th and 31st, and November 
1st, 1937. 



Decisions and Adjustments of Complaints 21 

2. The petitioner, Duke Power Company now owns that certain 
franchise originally granted to Charlotte Street Railway Company by 
Act of the General Assembly of North Carolina, Chapter 32 of the 
Laws of 1883, and amendments thereto, authorizing and empowering 
said Charlotte Street Railway Company, its successors and assigns, 
to construct, maintain and operate a street railway system in and 
adjacent to the City of Charlotte, including the right to use as a 
motive power any power then in use or that might thereafter be in- 
vented or applied; and that under and pursuant to said franchise Duke 
Power Company is now maintaining and operating the street railway 
system in and adjacent to the City of Charlotte. 

3. The petitioner, City of Charlotte, has directed, authorized and 
empowered Duke Power Company to abandon its street railway sys- 
tem in the City of Charlotte and vicinity, and to substitute, operate 
and maintain in lieu thereof a motor bus system, subject to the ap- 
proval of this Commission, and to that end the petitioners and Pied- 
mont and Northern Railway Company have entered into a contract 
dated October 20th, 1937, a copy of which is hereto attached, marked 
"Exhibit A" and made a part hereof; that said contract was duly ap- 
proved and the execution thereof on behalf of the City of Charlotte 
duly authorized by an ordinance duly passed by the City Council of 
the City of Charlotte at two regular meetings of said City Council 
duly convened on October 20th, 1937, and on October 27th, 1937, a 
copy of which ordinance is hereto attached, marked "Exhibit B," and 
made a part hereof; that said Ordinance authorities, empowers and 
directs Duke Power Company, in accordance with the provisions of 
said contract, to discontinue the maintenance, use and operation of 
its electric street railway system in and adjacent to the City of 
Charlotte, and to substitute, maintain, and operate in lieu thereof motor 
buses, subject, however, to the provision that the tracks described 
in said contract which are now used by Piedmont and Northern Rail- 
way Company shall not be abandoned, and that said Company, its 
successors and assigns, shall have the right to continue to maintain 
and use said tracks as provided in said contract. 

4. All of the electric street railway lines proposed to be abandoned 
as provided in the ordinance and contract above referred to, are located 
within the corporate limits of the City of Charlotte, except a portion 
of the line known as the "Hoskins Line"; and all of the motor bus 
routes proposed to be operated as provided in said ordinance and con- 
tract, are located within the corporate limits of the City of Charlotte, 
except the portion of the route to be known as "Thomasboro-Myers 
Park," extending from the City limits along Mt. Holly Road, Hoskins 
Avenue, Thomas Avenue, Thomasboro Belt Road and Thrift Road back 
to the City Limits, and except the portion of the route to be known 
as "Selwyn Avenue-Oaklawn," extending from the City Limits along 
Selwyn Avenue, Ridgewood Avenue, Marston Road, Hillside Avenue 
and Selwyn Avenue back to the City Limits; it is proposed to operate 
said Thomasboro-Myers Park route and said Selwyn Avenue-Oaklawn 
route within and outside of the limits of the City of Charlotte as 
described in said ordinance. 



22 N. C. Utilities Commission 

5. Pursuant to and in compliance with said ordinance, Duke Power 
Company proposes to discontinue the maintenance, use and operation 
of its electric street railway system in and adjacent to the City of 
Charlotte, and to substitute, maintain and operate in lieu thereof motor 
buses, except that the tracks described in said ordinance now used by 
Piedmont and Northern Railway Company will not be abandoned. 
Subject to such changes as may be lawfully made, Duke Power Com- 
pany will charge the same fares and maintain the same transfer priv- 
ileges on said motor bus system as are now charged and maintained 
on its existing electric street railway system. Subject to such changes 
as may be lawfully made, Duke Power Company will, as soon as prac- 
ticable, inaugurate and put into effect the motor bus route set out and 
described in the ordinance above referred to, and thereupon will 
discontinue the operation of its electric street railway system, together 
with any motor bus routes not included in those enumerated in the 
ordinance which are now operated in connection with said system. 

6. The discontinuance of said electric street railway system, except 
the tracks now used by Piedmont and Northern Railway Company, and 
the substitution of said motor bus system in lieu thereof, will sub- 
stantially improve and extend the transportation service in the City 
of Charlotte and in the vicinity thereof, and will materially promote 
the interest and convenience of the traveling public in said City and 
vicinity. 

7. At the hearing of this petition no objection was interposed by 
any member of the public, or any other person. 

Now, THEREFORE, IT IS ORDERED, ADJUDGED AND DECREED that the 

contract between the petitioner. City of Charlotte, and the petitioner, 
Duke Power Company, and Piedmont and Northern Railway Company 
hereinabove referred to, is hereby approved with respect to all matters 
and things therein contained within the jurisdiction of this Commis- 
sion; that Duke Power Company is authorized and empowered to per- 
manently abandon and discontinue the maintenance, use and operation 
of its electric street railway system in and adjacent to the City of 
Charlotte (except the tracks referred to in the above mentioned con- 
tract now used by Piedmont and Northern Railway Company), and 
said Duke Power Company, its successors and assigns, are authorized 
and empowered to substitute, operate and maintain motor buses in lieu 
of said street railway system, all as is set out in the contract and 
ordinance hereinabove referred to. 

It is further ordered that petitioner, Duke Power Company, be, 
and it hereby is granted a certificate of public convenience and neces- 
sity for the operation of said motor bus system. 

By order of the Utilities Commission of the State of North 
Carolina. 

This the 15th day of November, 1937. 

Stanley Winborne, 

Utilities Commissioner 

Attest : 

R. O. Self, Chief Clerk. 



Decisions and Adjustments of Complaints 23 

EXHIBIT A 

This contract Made and Entered into this 20th day of October, 
A.D., 1937, by and between the City of Charlotte, a municipal cor- 
poration duly created and existing under and by virtue of the laws 
of the State of North Carolina, party of the first part, hereinafter for 
convenience designated as and called the "City," and Duke Power 
Company, a corporation duly organized and existing under the laws 
of the State of New Jersey, party of the second part, hereinafter for 
convenience designated as and called the "Company," and Piedmont 
AND Northern Railway Company, a corporation duly organized and 
existing under and by virtue of the laws of the State of South Caro- 
lina, party of the third part, hereinafter for convenience designated 
as and called the "Railway Company," witnesseth: 

Whereas, the Company now owns that certain franchise originally 
granted to the Charlotte Street Railway Company by Act of the 
General Assembly of North Carolina, Chapter 32 of the Laws of 1883, 
and Amendments thereto, authorizing and empowering said Charlotte 
Street Railway Company, its successors and assigns, to construct, 
maintain and operate a street railway system in and adjacent to the 
City of Charlotte, including the right to use as motive power any 
power then in use or that might thereafter be invented or applied; and. 

Whereas, under and pursuant to said franchise the Company is 
now maintaining and operating the street railway system in and 
adjacent to the City of Charlotte; and, 

Whereas, it is the opinion of the governing body of the City that 
the transportation service of the Company in the City of Charlotte and 
vicinity will be substantially improved and the interest and conveni- 
ence of the traveling public in said City and vicinity will be materially 
promoted by substituting a motor bus system of transportation in said 
City and vicinity in place of said electric street railway system; and. 

Whereas, the City has requested the Company to make said sub- 
stitution, it being the purpose and intent of the parties hereto that the 
franchise of the Company with respect to transportation service in the 
City shall not be affected by said substitution except in respect of the 
method and means by which said transportation service shall be 
rendered. 

Now, therefore, in consideration of the premises and of the mutual 
covenants of the parties hereto. It is hereby Agreed By and Between 
said parties as follows: 

First: Subject to the approval of the North Carolina Utilities Com- 
mission, the Company is hereby authorized, empowered and directed 
by the City to discontinue the maintenance, use and operation of its 
electric street railway system in and adjacent to the City (except the 
tracks hereinafter described now used by the Railway Company), and 
the City hereby grants unto the Company, its successors and assigns, 
subject to the lawful regulation and ^control of the City, the right, 
privilege and authority of substituting and operating and maintaining 
motor buses in lieu of street railway lines in and upon the entire 
length of any and all streets, avenues and alleys of said City. 



24 N. C. Utilities Commission 

Second: Subject to such changes as may be lawfully made, the 
Company shall charge the same fares and maintain the same transfer 
privileges on said motor bus system as are now charged and maintained 
on its existing electric street railway system. 

Third: Subject to such changes as may be lawfully made, the 
Company shall, as soon as practicable after said substitution shall 
have been authorized and approved by the North Carolina Utilities 
Commission, inaugurate and put into effect the following motor bus 
routes, to-wit: 

(1) Belmont-Dilworth. 

Beginning at the Square (corner of Trade and Tryon Streets), 
thence along Trade to McDowell, McDowell to Seventh, Seventh 
to Central, Central to Louise, Louise to Belmont, Belmont to 
Pegram, Pegram to Grace, Grace to Allen, Allen to Parkwood and 
Parkwood to Pegram; thence returning along Pegram, Belmont, 
Louise, Central, Seventh, McDowell and Trade to the Square; 
thence along Tryon to Morehead, Morehead to South Boulevard, 
South Boulevard to East Boulevard, East Boulevard to Dilworth 
Road West, Dilworth Road West to Dilworth Road East, Dilworth 
Road East to East Boulevard, thence along East Boulevard, South 
Boulevard, Morehead and Tryon to the Square. 

(2) North Charlotte-Dilworth. 

Beginning at the Square, thence along North Tryon Street to 
Eleventh, Eleventh to Brevard, Brevard to Mallory, Mallory to 
Caldwell, Caldwell to Thirty-Sixth, Thirty-Sixth to Plaza, Plaza 
to Herrin, Herrin to Holt, Holt to Thirty-Sixth; thence returning 
along Thirty-Sixth, Caldwell, Mallory, Brevard and Eleventh to 
College; thence along College to Thirteenth, Thirteenth to Tryon 
and Tryon to the Square; thence along Tryon to Morehead, More- 
head to South Boulevard, South Boulevard to East Boulevard, 
East Boulevard to Dilworth Road West, Dilworth Road West to 
Dilworth Road East, Dilworth Road East to East Boulevard; thence 
along East Boulevard, South Boulevard, Morehead and Tryon to 
the Square. 

(3) Elizabeth-Dilworth. 

Beginning at the Square, thence along East Trade Street and 
Elizabeth Avenue to Hawthorne Lane, Hawthorne to Seventh 
Street, Seventh to Fifth, Fifth to Hawthorne Lane, Hawthorne to 
Elizabeth Avenue, Elizabeth and Trade Street to the Square; 
thence along Tryon to Morehead, Morehead to South Boulevard, 
South Boulevard to East Boulevard, East Boulevard to Dilworth 
Road West, Dilworth Road West to Dilworth Road East, Dilworth 
Road East to East Boulevard; thence along East Boulevard, South 
Boulevard, Morehead and Tryon to the Square. 

(4) Biddleville-Second Ward. 

Beginning at the Square, thence along West Trade Street and 
Beatty's Ford Road to Davis Avenue; thence returning by the 
same route to the Square; thence along East Trade Street to Bre- 
vard, Brevard to First, First to Alexander, Alexander to Boundary, 
Boundary to McDowell, McDowell to Trade; thence along Trade 
to the Square. 

(5) Thomasboro-Myers Park. 

Beginning at the corrffer of Trade and Mint Streets, thence 
along Trade Street and Rozzell's Ferry Road to the City Limits; 
thence along Mount Holly Road, Hoskins Avenue, Thomas Avenue, 
Thomasboro Belt Road and Thrift Road to the City Limits; thence 
along Thrift Road to Morehead Street, Morehead to Mint and 



Decisions and Adjustments of Complaints 25 

Mint to Trade (which portion of said route will be operated in 
opposite directions); thence along Trade Street and Elizabeth 
Avenue to Hawthorne Lane, Hawthorne to Queens Road, Queens 
Road to Briarcliff Place, along Briarcliff Place, Briarwood 
Road, Malvern Road, Hampton Avenue and Beverly Drive to 
Providence Road, and Providence Road to Queens Road; thence 
returning along Queens Road, Hawthorne Lane, Elizabeth Avenue 
and Trade Street to the beginning. 

(6) Selwyn Avenue-Oaklawn. 

Beginning at the Square, thence along East Trade Street to 
McDowell, McDowell to Morehead, Morehead to Kenilworth, Ken- 
ilworth to East Boulevard, East Boulevard, Queens Road and 
Radcliffe Avenue to Selwyn Avenue, Selwyn to Ridgewood Ave- 
nue, Ridgewood, Marston Road and Hillside to Selwyn; thence 
returning along Selwyn Avenue and the other named streets to 
the Square; thence along West Trade to Graham, Graham Street 
and Statesville Avenue to Oaklawn Avenue, and Oaklawn to Aus- 
tin Avenue; thence returning along Oaklawn, Statesville, Graham 
and Trade to the Square. 

(7) First Ward-State Street. 

Beginning at the Square, thence along Trade Street to Bre- 
vard, Brevard to Eleventh, Eleventh to Davidson, Davidson to 
Ninth, Ninth to Myers, Myers to Trade and Trade to the Square; 
thence along West Trade to State Street, and State to Turner Ave- 
nue; thence returning along State and Trade to the Square. 

(8) Eastover-Southern Station 

Beginning at the Square, thence along Trade Street and Eliza- 
beth Avenue to Hawthorne Lane, Hawthorne Lane to Fourth 
Street, Fourth and Crescent Avenue to Laurel Avenue, Laurel to 
Cherokee Road, Cherokee to Cottage Place, Cottage Place to 
Providence Road, Providence Road to Laurel Avenue; thence 
returning along Laurel, Crescent, Fourth, Hawthorne, Elizabeth 
and Trade to the Square; thence along West Trade Street to Gra- 
ham, Graham to Fifth, Fifth to Wilkes Place, Wilkes Place to 
Trade Street; thence to the Square. 

(9) Midwood-Wesley Heights. 

Beginning at the Square, thence along Trade Street to Mc- 
Dowell, McDowell to Seventh, Seventh to Hawthorne Lane, Haw- 
thorne to Central Avenue, Central to Club Road, Club Road to 
Belvedere Avenue, Belvedere to Plaza, Plaza to Mecklenburg; 
thence returning along Plaza to Central Avenue; thence returning 
along Central, Hawthorne, Seventh, McDowell and Trade to the 
Square; thence along West Trade Street to Cedar, Cedar to More- 
head, Morehead to Walnut Avenue, Walnut to Third Street, Third 
to Summitt Avenue, Summitt to Morehead; thence returning along 
Morehead, Cedar and Trade to the Square. 

(10) Fourth Ward-Morehead. 

Beginning at the Square, thence along North Tryon Street to 
Twelfth, Twelth to Church, Church to Tenth, Tenth to Pine, Pine 
to Eleventh, Eleventh to Graham, Graham to Twelfth, Twelfth to 
Pine, thence returning along Pine, Tenth, Church, Twelfth and 
Tryon to the Square; thence along Tryon to Morehead, Morehead 
to Dilworth Road, Dilworth Road to Mount Vernon, Mount Vernon 
to Myrtle, Myrtle to Berkeley, Berkeley to Dilworth Road, Dil- 
worth Road to Romany Road, east along Romany Road to More- 
head, thence along Morehead to Tryon and Tryon to the Square. 

(11) WILMORE-LOCKWOOD. 

Beginning at the Square, thence along North Tryon Street to 
Keswick, Keswick to Hutchinson, Hutchinson and Graham to 



26 N. C. Utilities Commission 

Eighth, Eighth to Try on and Try on to the Square; thence along 
Tryon to West Boulevard, West Boulevard to Mint, Mint to West 
Park Avenue, West Park to Wilmore Drive, Wilmore Drive and 
Dowd Road to Mint, Mint to First, First to Tryon and thence 
along Tryon to the Square. 

Fourth: Upon said motor bus system being substituted for said 
street railway system, the Company shall discontinue the operation of 
said electric street railway system, together with any motor bus routes 
not included in those above enumerated which are now operated in 
connection with said system, and the street railway tracks located 
upon the various streets, avenues and alleys of the City (except the 
tracks described in Paragraph FIFTH hereof) shall be paved over, or 
said streets, avenues and alleys shall be otherwise resurfaced to the 
satisfaction of the City, except that tracks located upon unpaved streets- 
may be taken up by the Company, in which event it shall restore such 
streets to their prior condition. The work of paving over said railway 
tracks and resurfacing said streets shall be done by the City and the 
Company shall pay the City therefor the sum of Twenty Thousand 
($20,000) Dollars. Upon said amount being paid, the Company, its 
successors and assigns, shall be released from any further obligation 
for the maintenance and upkeep of said streets, avenues and alleys, or 
for street improvement assessments, except assessments for which the 
Company, its successors or assigns, may become liable as an abutting 
property owner. 

Fifth: The railway tracks now used by the Railway Company in 
the operation of its railway into the City and into its freight and pas- 
senger stations located in the City, and the track upon and along Mint 
Street from a point approximately ten feet south of the intersection of 
Mint and Fourth Streets to a point approximately fifty feet north of 
the intersection of the west curb line of Mint Street with the north 
curb line of Hill Street which are now used by the Railway Company, 
shall not be abandoned, and the said Railway Company, its successors 
and assigns, shall have the right (in addition to such other rights as it 
has) to maintain said tracks over and along said streets and to operate 
its trains and cars thereover under the aforesaid franchise of the Duke 
Power Company, and during the life of said franchise shall be under 
the same obligations for the maintenance and upkeep of said streets 
and for street improvement assessments in respect thereof as the Duke 
Power Company, its successors and assigns, would have been under 
had the Duke Power Company, instead of the Railway Company, con- 
tinued to maintain said tracks upon and along said streets. 

Sixth: The Company agrees that it will join with the City in a 
formal application to the North Carolina Utilities Commission for the 
approval by said Commission of the substitution of said motor bus 
system in the City of Charlotte and vicinity in place of the existing 
electric street railway system and for authority to carry out and 
perform this agreement. 

Seventh: Upon said substitution being approved by said North 
Carolina Utilities Commission this agreement shall be binding upon 
and shall inure to the benefit of the parties hereto, their successors and 



Decisions and Adjustments of Complaints 27 

assigns; and said franchise originally granted to the Charlotte Street 
Railway Company, its successors and assigns, as hereby modified, shall 
continue and remain in full force and effect. 

In witness whereof, the City of Charlotte, having duly ap- 
proved the execution of this contract by ordinance and resolution 
duly voted on and passed at two regular meetings of the City Council 
of said City, duly assembled on the 20th day of October, 1937, and 
on the 27th day of October, 1937, has caused this contract to be signed 
by its Mayor, and its corporate seal to be hereunto affixed and attested 
by its City Clerk, and Duke Power Company has caused this contract 
to be signed in its name and behalf by its Vice President, and its cor- 
porate seal to be hereunto affixed and attested by its Assistant Secre- 
tary, and Piedmont and Northern Railway Company has caused this 
contract to be signed in its name and behalf by its President, and its 
corporate seal to be hereunto affixed, and attested by its Secretary, 
and said contract has been so executed by said parties in triplicate, 
the day and year first above written. 

Attest: City of Charlotte, 



By 

City Clerk. By Mayor. 

Attest: Duke Power Company, 



By 

Asssitant Secretary. Vice President. 



By 

Attest: Piedmont and Northern Rail- 

way Company, 
Secretary. President. 

EXHIBIT B. 

AN ORDINANCE, 

AUTHORIZING, EMPOWERING AND DIRECTING DUKE POWER 
COMPANY TO DISCONTINUE THE MAINTENANCE, USE AND 
OPERATION OF ITS ELECTRIC STREET RAILWAY SYSTEM IN 
AND ADJACENT TO THE CITY OF CHARLOTTE, AND TO SUB- 
STITUTE, MAINTAIN AND OPERATE IN LIEU THEREOF MOTOR 
BUSES: AUTHORIZING PIEDMONT AND NORTHERN RAILWAY 
COMPANY TO CONTINUE TO USE AND MAINTAIN CERTAIN 
TRACKS IN THE CITY: AND AUTHORIZING THE EXECUTION 
ON BEHALF OF THE CITY OF THE CONTRACT BETWEEN THE 
CITY, DUKE POWER COMPANY AND PIEDMONT AND NORTH- 
ERN RAILWAY COMPANY RELATING TO SAID SUBSTITUTION 
AND TO SAID TRACKS. 

Whereas, the City Council of the City of Charlotte, through its 
Mayor, has requested the Duke Power Company to substitute motor 
buses for street cars in the City of Charlotte and vicinity, and. 



28 N. C. Utilities Commission 

Whereas, Duke Power Company, through its officers, has agreed 
to make this substitution, subject to the approval of the North Carolina 
Utilities Commission; and. 

Whereas, pursuant to said negotiations for this substitution, a con- 
tract or agreement dated October 20, 1937 has been prepared to be 
executed by the Duke Power Company, the Piedmont and Northern 
Railway Company and the City of Charlotte, a copy of which said 
contract is hereto attached, and made a part of this ordinance, the 
terms and provisions of which contract were read, discussed and con- 
sidered by the City Council of the City of Charlotte at its Regular 
Meeting of October 20, 1937, which agreements and provisions of said 
contract are satisfactory and acceptable to the Mayor and Members of 
the City Council. 

Novi^, therefore, be it ordained by the City Council of the City of 
Charlotte in Regular Session: 

Section I. That said contract between the City of Charlotte, Duke 
Power Company and Piedmont and Northern Railway Company, dated 
October 20, 1937, relating to the substitution of motor buses for the 
electric street railway system of the Duke Power Company in and 
adjacent to the City, and to the abandonment of the street railway 
tracks of said electric street railway system, except the tracks now 
used by the Piedmont and Northern Railway Company, be, and the 
same hereby is, in all respects authorized and approved, and the Mayor 
and City Clerk are hereby authorized to execute said contract for and 
on behalf of the City. 

Section II. That in accordance with the provisions of said contract 
the Duke Power Company is hereby authorized, empowered and 
directed to discontinue the maintenance, use and operation of its elec- 
tric street railway system in and adjacent to the City of Charlotte, and 
to substitute, maintain and operate in lieu thereof motor buses; except 
that the tracks described in said contract now used by the Piedmont 
and Northern Railway Company shall not be abandoned, and said 
Company, its successors and assigns, shall have the right to continue 
to maintain and use said tracks, as provided in said contract. 

Section III. That this ordinance shall become effective from and 
after the date of its passage by the City Council of the City of Char- 
lotte at two Regular Meetings of the City Council. 

Docket No. 1128. 

NORTH CAROLINA MERCHANTS ASSOCIATION 

VS. 
DUKE POWER COMPANY 

Order 
The above entitled matter came on for hearing before the Com- 
mission on Thursday, April 30th, 1936, at 10:30 o'clock a.m., upon a 
petition duly filed by the North Carolina Merchants Association, ask- 
ing that the Duke Power Company be ordered to put into effect a 
commercial lighting rate not in excess of that charged to residential 



Decisions and Adjustments of Complaints 29 

consumers and that said Company be ordered to put into effect a 
commercial lighting rate schedule which does not discriminate in favor 
of a few large commercial consumers. The respondent filed answer 
praying that the petition be dismissed. 

This case was heard by Stanley Winborne, Utilities Commissioner, 
F. L. Seely, Associate Commissioner, and Frank W. Hanft, Associate 
Commissioner. 

The petitioners were represented by Attorney Herbert S. Falk, 
of Greensboro, North Carolina. 

The respondent was represented by W. S. O'B. Robinson, of Char- 
lotte, North Carolina. 
Winborne, Commissioner: 

The issues which the Commission finds are properly before the 
Commission, under the petition, the answer and the evidence intro- 
duced, are: 

(1) Whether the commercial rate schedule of respondent is ex- 
cessive and unlawfully discriminatory against merchants using 
electric current, in that it is considerably higher than the 
rate charged residential consumers using the same quantity 
of electricity, and 

(2) Whether the rate schedule of respondent unlawfully discrimi- 
nates between various classes of commercial users in that 
it gives a few large commercial consumers a rate for their 
electric service which is considerably lower than that given 
to the large body of commercial consumers. 

There are in the pleadings and record many statements which deal 
with negotiations between the parties preliminary to the filing of the 
petition, with the corporate history, accounting practice, property ap- 
praisal, and income of respondent. However, the Commission finds that 
the only issues properly presented for determination are the two above 
noted. 

The petition contains a schedule of rates for commercial electric 
lighting and residential electric service, the correctness of which is 
admitted in the answer. Following the filing of the answer and before 
hearing in this matter, respondent filed with the Commission and put 
into effect a new schedule of rates for residential electric service and 
commercial electric lighting service. Tables showing the rates in effect 
at the time of the filing of the petition and those subsequently put into 
effect are set out below: 

Residential Electric Service — Rate 

(Effective before filing of petition) 
80 cents for the first 10 kwh or less used per month. 
61/2 cents per kwh for the next 20 kwh used per month. 
3 cents per kwh for the next 100 kwh used per month. 
21/2 cents per kwh for all over 130 kwh used per month. 

Commercial Electric Lighting Service — Rate 
(Effective before filing of petition) 
80 cents for the first 10 kwh or less used per month. 
6 1/2 cents per kwh for the next 20 kwh used per month. 
5 cents per kwh for the next 100 kwh used per month. 
4.9 cents per kwh for the next 870 kwh used per month. 
1.9 cents per kwh for all over 1,000 kwh used per month. 



30 N. C. Utilities Commission 

Residential Electric Service — Rate 
(New rate effective after March 1, 1936) 
80 cents for the first 10 kwh or less used per month. 
5 cents per kwh for the next 20 kwh used per month. 

4 cents per kwh for the next 20 kwh used per month, 
3 cents per kwh for the next 50 kwh used per month. 
21/2 cents per kwh for all over 100 kwh used per month. 

Commercial Electric Light Service — Rate 
(New rate effective after March 1, 1936) 
80 cents for the first 10 kwh or less used per month. 

5 cents per kwh for the next 90 kwh used per month. 
41/2 cents per kwh for the next 300 kwh used per month. 
31/2 cents per kwh for the next 600 kwh used per month. 

2.8 cents per kwh for the next 1,000 kwh used per month. 

1.9 cents per kwh for all over 2,000 kwh used per month. 

Residential Electric Light Service — Rate 
(Effective November 1, 1936) 
80 cents for first 10 kwh or less used per month. 
5 cents per kwh for the next 20 kwh used per month. 
31/2 cents per kwh for the next 20 kwh used per month. 
2y2 cents per kwh for all over 50 kwh used per month. 

Schedule No. 1-C 
Commercial Electric Lighting Service 
(Effective on and after November 1, 1936) 
80 cents for the first 10 kwh or less used per month. 
4.5 cents per kwh for the next 90 kwh used per month. 
4.0 cents per kwh for the next 400 kwh used per month. 
3.0 cents per kwh for the next 500 kwh used per month. 
2.5 cents per kwh for the next 1,000 kwh used per month. 
1.9 cents per kwh for the next 2,000 kwh used per month. 

We proceed to the first issue, i.e., does the schedule of respondent 
unlawfully discriminate between the comrhercial electric lighting con- 
sumers and the domestic electric consumers? The schedules themselves 
show that the rates for commercial service are higher than the rates 
for residential lighting service. The evidence adduced by respondent 
in justification thereof was directed toward showing that the differen- 
tiation between the rates is based upon material differences in the 
conditions under which the two types of service are rendered and in 
the costs related thereto. The commercial lighting schedule is pri- 
marily not comparable with the residential schedule because the 
residential rate covers lighting, heating, cooking, refrigeration and 
power, while the commercial schedule is largely for lighting alone, 
separate and lower rates being available for commercial power and 
heating service. 

The maximum demands of a large percentage of commercial light- 
ing consumers occur regularly at the same time of day. On the other 
hand, the individual maximum demands of the residential users occur 
at widely different times. This lower diversity between commercial 
loads results in a less effective use of the company's facilities than ob- 
tains with residential service and is reflected in a greater propor- 
tionate cost. 

Neither the petitioner nor the respondent has furnished the Com- 
mission any data which shows the actual cost differential between the 



Decisions and Adjustments of Complaints 31 

two types of service, and the respondent's witness states that such a 
cost analysis would be of little value since it would be based, in part 
at least, upon assumption. From the evidence introduced, it is clear 
that it would be almost impossible to obtain an accurate analysis of 
such costs. Notwithstanding the absence of specific data as to costs, 
the evidence does clearly show that the cost to the respondent is 
greater in furnishing electricity to commercial lighting consumers than 
to residential electric consumers. 

It must be kept in mind that the issue before us involves commer- 
cial lighting only, as compared with the residential service for all 
purposes. The commercial rates for refrigeration, heating, air condi- 
tioning and motors of 2 H. P. or over, are not involved in this case; 
separate schedules are provided for these various classes of service 
at lower rates. 

The residential user's consumption of electrical energy is more 
constant throughout the entire twenty-four hour period of the day 
now than ever before, and the number of kilowatt hours used in pro- 
portion to the kilowatt capacity connected is relatively much greater 
than the commercial user. Since the reduction in rates, which began 
in earnest in this State in August, 1932, the spread of the use of elec- 
tricity by the residential consumer over the twenty-four hour period 
has been progressively increased. Formerly only a few residential cus- 
tomers used electricity for other than illuminating purposes, which 
use was confined to a few hours of the day. Now the use of refriger- 
ators, water heaters, electric ranges, washing machines, radios, irons, 
et cetera, consume electricity in far greater amounts than heretofore 
and this consumption continues throughout the day into the night, 
long after the commercial customer has pulled his switch. It, there- 
fore, appears obvious to this Commission that the residential cus- 
tomer is entitled to a lower rate than the commercial customer. 

Basing its conclusions on the foregoing distinction between the 
nature and cost of furnishing the two types of service, the Commission 
finds that the schedule now in effect does not unlawfully discriminate 
against commercial lighting consumers. A similar question has been 
presented to other State regulatory bodies and they have reached 
decisions substantially in accordance with that here made. Re: Roches- 
ter Gas & E. Corp. (N. Y.) P. U. R. 1931 D. 31; Re: Middleton Muni- 
cipal Water & Light Dept. (Wis.) P. U. R. 1933 C. 201; Re: City of 
Hartford Utility Dept. (Wis.) P. U. R. 1933 C. 498; Re: City of Hart- 
ford V. Hartford Electric Light Company (Conn.) (1935), 9 P. U. R. 
(N. S.) 228; Re: Twenty-five Customers v. Brooklyn Edison Com- 
pany, Inc., P. U. R., June 10, 1937, 241. 

The Wisconsin Commission, which has been one of the most active 
Commissions in the nation, in the revision of utility rates, in 1932 
in its order in the case Re: City of Hartford Utility Department, 
supra, in justifying its conclusion that commercial rates should be 
higher than residential rates, said: 

"The question has been raised by customers and officials as to 
why there should be a differential between the size of the blocks or 



32 N. C. Utilities Commission 

rate per kilowatt hour for service supplied residential customers and 
service supplied commercial customers. The reason for such differ- 
entials is the peculiar characteristics of the various classes of users; 
such as better load factor, operation at off-peak periods, etc." 

"It has been found that on the average a commercial customer 
has a poorer load factor than the average residential customer. That 
is, the number of kilowatt hours used in proportion to the kilowatt 
capacity connected is relatively small. Again, the commercial cus- 
tomer, in addition to being a short-hour user, with a relatively large 
connected load, ordinarily makes his demand upon the system of the 
utility simultaneous with the maximum demand upon the plant and 
thus necessitates the holding in readiness of the full generating capac- 
ity which the installation in question would require. In brief, the 
average commercial customer is a short-hour user of a relatively large 
load which comes on the peak for which generating capacity must 
be provided." 

"The utility, obliged to maintain a considerable plant in order to 
supply service to a group of customers during the few hours only, is 
supplying expensive service, because the fixed charges covering the 
whole year form a large part of the cost of service. When the bulk of 
the utility's business is nonpeak to the extent of making use of in- 
vestment during the periods which otherwise would be lightly loaded, 
the customer should not be charged with all of the demand costs 
comprising the on-peak demand only, but should be given the full 
benefit of the economics resulting from the fact that he uses consid- 
erable energy at a time which is off-peak." 

The same ommission in 1933, in the case of Re: Middleton Muni- 
cipal Water and Light Department, supra, refused to approve rates 
submitted to it by the utility applying alike to residential and com- 
mercial customers, and ordered a reduction in the residential and 
rural rates but not the commercial rates. In said opinion the Com- 
mission states: "This procedure is based on long recognized differences 
in load characteristics of the different classes of customers, and to 
ignore this factor would tend to lead to rate discriminations." 

The Tennessee Valley Authority, in fixing its rate schedule, makes 
a greater percentage difference between the rates charged commer- 
cial customers and residential customers than exist between the same 
two classes of service in the rates of the Duke Power Company; the 
commercial rate being much higher. 

Since the first draft of this order, there has appeared an article in 
the September 16th issue of the Public Utilities Fortnightly, by Rich- 
ard J. Beamish, member of the Pennsylvania Public Utility Commis- 
sion, in which is discussed the recent investigation of electric rates 
by his Commission and the "temporary rates" which the Commission 
"has moved to apply" to the Edison Light & Power Company and 
other electric companies in his State. The schedules of domestic and 
commercial rates are set forth in said article in detail and show that 
for domestic service the charge per kilowatt hour for all in excess of 
200 kilowatt hours per month is not reached in the commercial sched- 



Decisions and Adjustments of Complaints 33 

ule until over 2,000 kilowatt hours per month have been comsumed. 
The two schedules are the same only for the first thirty kilowatt hours 
per month, after which the residential rate drops below the com- 
mercial. 

We have examined numerous decisions, botji by Commissions and 
the Courts, and find that, almost invariably, higher commercial than 
residential rates have been prescribed and approved. 

In some few instances throughout the country the commercial and 
residential rates are the same, but in most cases where this is true we 
find that it is in a city or town which is served by natural gas and 
where the gas rates are so low that it is used for cooking, water heating 
and refrigeration and the residential customer is practically no more 
than a lighting customer and there are not the characteristic differences 
between the commercial lighting customer and the residential lighting 
customer as exist in North Carolina. 

Mr. C. L. Fishburn, Jr., the expert witness for the petitioner, who 
is on the engineering staff of the South Carolina Public Service Com- 
mission, although contending that in his opinion there was no element 
of cost in supplying a commercial customer which would justify an 
increased rate over that charged a residential customer, admitted that 
in South Carolina the same difference exists between the commercial 
and residential rates of the Duke Power Company as in North Caro- 
lina, and that there was less difference between the commercial and 
residential rates charged by the Duke Power Company and approved 
by the South Carolina Commission, than in any other electric utility 
operating within said State. 

Even if the cost of serving a commercial customer was no greater 
than that of serving a residential customer, and this Commission is 
definitely of the opinion that the cost is greater, the results which 
have been obtained by repeated reductions in rates for the last four 
years have fully justified the lower rates given the residential customer. 
Prior to the rate reduction effective December 1st, 1932, the Duke 
Power Company had the same schedule of rates for residential as 
for commercial use with a low cooking rate. At that time the rates 
were high, too high to permit the free use of electricity, either by 
commercial or residential customers. In opposing rate reductions, the 
utilities contended that the revenue was insufficient to permit reduc- 
tions. The solution of the trouble, both from the utilities and the public 
standpoint, in the opinion of this Commission, was to increase the 
volume of sale, and that in order to increase the volume of sale, the 
cost of electricity must be so reduced that the public could use it 
freely. After repeated conferences, the utilities agreed to try out the 
theory of the Commission and reductions were made. The results 
were so gratifying that further reductions were made in large and 
larger amounts from year to year as the consumption increased. At 
the beginning greater reductions were made to residential customers 
than to commercial customers, and this was done for two reasons, 
first, because it was believed then, as now, that it cos.t more to serve 
the commercial customer; and, second, because it believed there was 



34 N. C. Utilities Commission 

a greater possibility of increasing the volume of sales to residential 
than to commercial customers. 

The substantial increase in the consumption of electricity by resi- 
dential customers since December 1st, 1932, has progressively stimu- 
lated the use of electricity and made other reductions possible. 

Furthermore, it should be remembered that the lower residential 
rates have benefited the greater number of people and have made it 
possible for those already having electricity in their homes to take 
fuller advantage of the benefits derived from its use and have also 
carried the service to thousands of homes, especially in rural sections, 
where electricity was hitherto not available. 

The second issue involves an alleged discrimination between various 
c' asses of commercial users. The rate tables heretofore set out show 
that under the rates in effect at the time the petition was filed, the 
lowest rate, until 1,000 kilowatt hours have been consumed, is 4.9 
cents per kilowatt hour and that the rate following consumption of 
1,000 kilowatt hours is 1.9 cents per kilowatt hour, or a drop of 3 
cents per kilowatt hour between the two blocks of consumption. The 
table further shows that under the schedule which was made effective 
March 1, 1936, subsequent to the filing of the petition, but prior to 
this hearing, the difference in the rate between commercial consumers 
using less than 1,000 kilowatt hours and those using more than that 
amount has been materially lessened. 

The evidence establishes and the Commission recognizes that it is 
customary to charge a lower rate for succeeding blocks of energy than 
for the initial block. There is insufficient evidence in the record to 
show that the rate to commercial consumers using more than 1,000 
kilowatt hours under the schedule presently effective is unreasonable 
or constitutes an unjust discrimination against the other commercial 
consumers. The rates effective on March 1, 1936 and November 1st, 
1936, have made the spread between the rate for various blocks of 
electricity to commercial consumers more gradual and thus a large 
part of petitioner's alleged cause of complaint has been eliminated. We, 
therefore, find that allegations in the petition with respect to the 
unlawful and unfair discrimination have not been sustained by com- 
petent proof. 

It should be noted as a matter of record but not as determinative 
of the issue involved herein, that on November 1, 1936, after the hear- 
ing in this case, new lower rates were put into effect for both resi- 
dential and commercial consumers and that these rates make the 
reduction to commercial consumers in the various consumption blocks 
still more gradual and decrease the divergence between the commercial 
lighting and residential service schedules below that existing under 
the schedules which were effective when the hearing herein began. 

It having been unanimously agreed in the first conference on this 
case that the commercial rates could not be legally reduced, as prayed 
for by the petitioner, and the Commission being of the opinion that 
further rate reductions could be procured by agreement, deferred the 
issuing of the order. Rate reductions were procured in November, 1936, 



Decisions and Adjustments of Complaints 35 

both in the residential and commercial rates, the greater reductions 
being 'in commercial rates. The Commission continued in the belief 
that still more reductions could be procured by agreement in the fall 
of 1937; and reductions could have been justified had not there been 
an increase in operating cost and at the same time a decided diminution 
in income for the last quarter of 1937. 

Wherefore it is ordered, that the petition be and the same is 
hereby dismissed. 

This the 15th day of November, 1937. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
(Signed) Frank W. Hanft, 

Associate Com^missioner. 

(Signed) F. L. Seely, 

Associate Com^missioner. 
Associate Commissioner Hanft, concurring: 

"I concur. At the time the petition herein was filed it was hoped by 
the petitioners that the alleged discrimination between commercial and 
residential rates would be removed by lowering the commercial rates. 
Of course, such a result would not necessarily follow from a mere 
showing of discrimination; the discrimination could also be removed 
by raising the residential rates. Naturally this latter result was not 
sought by petitioners, but rather a lowering of their own rates. Without 
the compulsion of an adverse order by the Commission in this case 
both the commercial and residential rates have been materially reduced 
since the filing of this petition. 

Both objectives of petitioners having been accomplished, there 
appears to be no occasion for any further action by the Commission. 
There is no grievance to be remedied unless the bare fact of a difference 
between commercial rates and residential rates constitutes a grievance. 
Obviously such a difference is justified. Commissioner Winborne in his 
opinion has already pointed out that the user of electricity for com- 
mercial lighting has an unfavorable load factor. That is, his use of 
current is small in comparison to his capacity. That this poor load 
factor justifies a higher rate can be demonstrated by the following 
illustration, over simplified in order to make plain the principle: An 
electric company has only one customer, and that customer runs a 
motor by electricity ten hours a day. A second electric company has 
also only one customer, who has a motor ten times as big which he 
runs by electricity only one hour a day. The two electric companies 
obviously sell exactly the same amount of current. Equally obviously 
the second company would have to maintain a plant ten times as 
powerful in order to sell exactly the same amount of current as the 
first plant. The rates of the second plant must therefore be higher than 
those of the first, and the second customer must pay more than the 
first. Since the commercial customers have a relatively large demand 
for a relatively small time each day they must expect to pay more for 
their current. Add the fact that this demand comes at the time of the 



•*«r 



36 N. C. Utilities Commission 

company's peak load and it becomes plain that a higher charge to com- 
mercial customers is not discriminatory. Discrimination arises, when 
differences in treatment are not founded on differences in circum- 
stances. 

(Signed) Frank W. Hanft." 

"I fully concur in the opinion of Commissioner Winborne in the 
foregoing order. 

(Signed) F. L. Seely." 
Docket No. 626. 

IN THE MATTER OF THE SUBSTITUTION OF MOTOR BUSES IN 
PLACE OF THE ELECTRIC STREET RAILWAY LINES NOW 
BEING OPERATED BY DUKE POWER CO. IN THE CITY OF 
SALISBURY AND IN THE TOWN OF SPENCER. 

Order 
This cause coming on to be heard before the Utilities Commission 
of the State of North Carolina, and being heard at 11:00 o'clock, A. M., 
on the 14th day of June, 1938, and the petitioners having introduced 
evidence in support of their petition, the Commission finds the follow- 
ing facts: 

1. The City of Salisbury and the Town of Spencer and Duke Power 
Company duly filed with the Commission their verified petition in the 
above entitled matter on May 19, 1938, and the Commission on said 
date duly made and entered its order directing that a public hearing 
on said petition be held at the office of the Commission in the State 
Department Building at the corner of Edenton and Salisbury Streets 
in the City of Raleigh, at 11:00 o'clock, A.M., on the 14th day of 
June, 1938, and that notice of said hearing be given to the public and 
to all whom it might concern by publication in three consecutive issues 
of the Salisbury Evening Post and the Salisbury Morning Herald, daily 
newspapers regularly published in the City of Salisbury and having 
a general circulation in the City of Salisbury, the Town of Spencer, and 
in the surrounding territory. Pursuant to said Order notice of said 
hearing was duly published in the Salisbury Evening Post on the 23rd, 
24th and 25th days of May, 1938, and notice of said hearing was duly 
published in the Salisbury Morning Herald on the 23rd, 24th and 25th 
days of May, 1938. 

2. Petitioner Duke Power Company now owns that a certain fran- 
chise originally granted to Salisbury Light and Power Company by the 
City of Salisbury under date of May 25, 1901, authorizing and empow- 
ering said Salisbury Light and Power Company, its successors and 
assigns, to construct, maintain and operate a street railway system in 
and adjacent to the City of Salisbury, and that under and pursuant 
to said franchise Duke Power Company is now maintaining and oper- 
ating the street railway system in and adjacent to the City of Salisbury. 

3. Petitioner Duke Power Company now owns that certain fran- 
chise originally granted to Salisbury Light and Power Company by 
the Town of Spencer under date of June 8, 1901, authorizing and 



Decisions and Adjustt^ients of Complaints 37 

empowering said Salisbury Light and Power Company, its successors 
and assigns, to construct, maintain and operate a street railway system 
in and adjacent to the Town of Spencer, and that under and pursuant 
to said franchise Duke Power Company is now maintaining and oper- 
ating the street railway system in and adjacent to the Town of Spencer. 

4. The petitioners City of Salisbury and Town of Spencer have 
each directed, authorized and empowered Duke Power Company to 
abandon its street railway system in the City of Salisbury and the 
Town of Spencer and to substitute, operate and maintain in lieu thereof 
a motor bus system subject to the approval of this Commission, and to 
that end the petitioners City of Salisbury and Duke Power Company 
have entered into a contract dated March 18, 1838, a copy of which 
is hereto attached, marked Exhibit A, and made a part hereof, and the 
Town of Spencer and Duke Power Company have entered into a 
contract dated April 27, 1938, a copy of which is hereto attached, 
marked Exhibit B, and made a part hereof; that said contract between 
the City of Salisbury and Duke Power Company was duly approved 
and the execution thereof on behalf of the City of Salisbury duly 
authorized by an ordinance duly passed by the City Council of the 
City of Salisbury at two regular meetings of said City Council, duly 
convened on March 11th and March 18th, 1938, a copy of which ordi- 
nance is hereto attached, marked Exhibit C, and made a part hereof, 
and that said contract between the Town of Spencer and Duke Power 
Company was duly approved and the execution thereof on behalf of 
the Town of Spencer duly authorized by an ordinance duly passed 
by the Town Council of the Town of Spencer at two regular meetings 
of said Town Council duly convened on March 18th and April 27th, 
1938, a copy of which ordinance is hereto attached, marked Exhibit D, 
and made a part hereof; that said ordinances authorize, empower and 
direct Duke Power Company, in accordance with the provisions of 
each of said contracts, to discontinue the maintenance, use and opera- 
tion of its electric street railway system in and adjacent to the City of 
Salisbury and the Town of Spencer, and to substitute, maintain and 
operate in lieu thereof motor buses. 

5. All of the electric street railway lines proposed to be abandoned, 
as provided in the ordinances and contracts above referred to, are 
located within the corporate limits of the City of Salisbury and the 
Town of Spencer, respectively, and all of the motor bus route proposed 
to be operated as referred to in said ordinances and contracts, are 
located within the corporate limits of the City of Salisbury and of 
the Town of Spencer, respectively, except a small portion of same to 
be operated in the Town of East Spencer, and except approximately 
one-half mile extending from the City Limits of the City of Salisbury to 
Catawba College. 

6. Pursuant to and in compliance with said ordinances and con- 
tracts, Duke Power Company proposes to discontinue the maintenance, 
use and operation of its electric street railway system in and adjacent 
to the City of Salisbury and the Town of Spencer, and to substitute, 
maintain and operate in lieu thereof motor buses. Subject to such 



38 N. C. Utilities Commission 

changes as may be lawfully made, Duke Power Company will charge 
the same fares and maintain the same transfer privileges on said motor 
bus system as are now charged and maintained on its existing electric 
street railway system. Subject to such changes as may be lawfully 
made, Duke Power Company will, as soon as practicable, inaugurate 
and put into effect the motor bus routes set out and described in the 
ordinances above referred to (and being set out in full in the ordinance 
passed by the City Council of the City of Salisbury) and thereupon 
will discontinue the operation of its electric street railway system. 

7. The discontinuance of said electric street railway system and the 
substitution of said motor bus system in lieu thereof, will substantially 
improve and extend the transportation service in the City of Salisbury 
and the Town of Spencer and in the vicinity thereof, and will materi- 
ally promote the interest and convenience of the traveling public of 
said City, Town and vicinity. 

8. At the hearing of this petition no objection to granting this 
order was interposed by any member of the public or any other person. 

Now, THEREFORE, IT IS ORDERED, ADJUDGED AND DECREED that the 

contract between petitioners City of Salisbury and Duke Power Com- 
pany, and the contract between petitioners Town of Spencer and Duke 
Power Company are, and each of same is, hereby approved in respect 
to all matters and things therein contained within the jurisdiction of 
this Commission; that Duke Power Company is authorized and empow- 
ered to permanently abandon and discontinue the maintenance, use 
and operation of its electric street railway system in and adjacent to 
the City of Salisbury and the Town of Spencer, and said Duke Power 
Company, its successors and assigns, are authorized and empowered to 
substitute, operate and maintain motor buses in lieu of said street rail- 
way system, all as set out in the contracts and ordinances hereinabove 
referred to. 

It is further ordeded that petitioner Duke Power Company be, 
and it hereby is, granted a certificate of public convenience and neces- 
sity for the operation of said motor bus system. 

By order of the Utilities Commission of the State of North 
Carolina. 

This the 14th day of June, 1938. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 

Attest : 

(Signed) R. O. Self, Chief Clerk. 
Docket No. 1312. 



Decisions and Adjustments of Complaints 39 

PETITION OCRACOKE POWER & LIGHT COMPANY FOR CER- 
TIFICATE OF CONVENIENCE AND NECESSITY TO CONSTRUCT 
AN ELECTRIC GENERATING PLANT AND DISTRIBUTION 
LINES ON THE ISLAND OF OCRACOKE. 

Order 
Amending Order of November 9, 1932 

This cause arises upon the application of the Ocracoke Power and 
Light Company for Certificate of Public Convenience and Necessity 
to construct an electric generating plant and distribution lines in, 
and around the Town of Ocracoke, on Ocracoke Island. A similar ap- 
plication was presented to the Commission by the Ocracoke Power 
and Ice Company, Incorporated and Certificate was granted under 
date of November 9, 1932, as evidenced by Docket No. 7370. 

It appears that the parties interested in the former company are 
also interested in the present company, and that the present appli- 
cation under consideration was filed because of the limitations in the 
Certificate granted to the former company whereby said Certificate 
expired on May 9, 1933. It further appears that construction by the 
former company, under the Certificate named, was not completed be- 
cause of inadequate funds; and it further appears that there is a pos- 
sibility of the present applicant obtaining sufficient funds from the 
Federal Rural Electrification Authority. 

Therefore, the former Certificate of Convenience and Necessity, 
dated May 9, 1932, in favor of the Ocracoke Power and Ice Company, 
Incorporated, is hereby amended so as to make it read "Ocracoke 
Power and Light Company," and the limitation in said Certificate is 
hereby extended to expire January 1, 1938, if construction is not be- 
gun prior to that date; and if construction is begun prior to January 
1, 1938, this authority shall be continuous if the work on construction 
is completed and the plant put in operation on, or before May 1, 1938. 
This June 9th, 1937. 

Stanley Winborne, 

Utilities Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1030. 

APPLICATION OF PAMLICO ICE AND LIGHT CO. TO AMEND 
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY. 

Order 

This matter comes before the Utlities Commission upon the appli- 
cation of the Pamlico Ice and Light Co., asking for an amendment 
of its Certificate of Public Convenience and Necessity, in order that 
it may extend its present electric line from Stumpy Point to Mann's 
Harbor, a distance of 13 miles. 

From the application and representations of Mr. P. D. Midgett, Jr., 
Treasurer of said Pamlico Ice and Light Co., the following facts are 
found : 



40 N. C. Utilities Commission 

That on the 2nd day of March, 1935, the said Pamlico Ice and Light 
Co. filed its original application for a Certificate of Public Convenience 
and Necessity to construct and operate electric lines over certain 
routes within Hyde County. That on the 20th day of January, 1936, 
the Pamlico Ice and Light Co. filed an application for an amendment, 
asking that it be authorized to extend its line from Engelhard, N. C. 
to Stumpy Point, N. C. Both the original application and the appli- 
cation to extend its line were duly granted by this Commission. 

At the present time, the said Company has completed its generat- 
ing plant at Engelhard and has constructed more than 30 miles of 
electric lines; the longest is 25 miles, leading fro mEngelhard to 
Swann Quarter, and is now rendering adequate, complete and satis- 
factory service to all of its consumers. 

It has been further made to appear that there is not now, and 
never has been, any commercial electric service available at Mann's 
Harbor, or within any of the territories over which the applicant pro- 
poses to construct an electric line and that there is no other electric 
company operating within the territory proposed to be served, the 
nearest electric company being on the other side of Croatan Sound, 
on Roanoke Island, and the next nearest being that of the Virginia 
Electric and Power Co., at Columbia, N. C, some 35 miles away, 
and also separated from this territory by the Alligator River. 

After a full consideration of the facts, the Commisison is satisfied 
that the petitioner is the logical Company to serve Manns Harbor and 
that, in fact, under the law, since said territory is not served by any 
other Company, the petitioner has the right to extend its service from 
Stumpy Point, along the new Highway, soon to be completed, to 
Manns Harbor; 

And it is therefore ordered, that a Certificate of Public Con- 
venience and Necessity be and the same is hereby granted to the 
petitioner to extend its electric line and service from Stumpy Point 
to Manns Harbor and that this authorization of extension be added as 
an amendment to the Certificate of Public Convenience and Necessity, 
originally granted the Pamlico Ice and Light Co., of record in this 
Commission. 

This the 9th day of April, 1937. 

(Signed) Stanley Winborne, 
Docket No. 308. Utilities Commissioner. 

PETITION OF PAMLICO ICE AND LIGHT COMPANY FOR AU- 
THORITY TO ISSUE AND SELL STOCK. 

Order 
Now COMES the Pamlico Ice and Light Company and makes appli- 
cation to increase its stock in the sum of $5,000.00. Its charter pro- 
vides for a total capital of $100,000.00. Shortly after the corporation 
was organized it borrowed $45,000.00 and executed its promissory 
notes secured by a deed of trust on its real estate and only $5,000.00 
in capital stock has been issued. 



Decisions and Adjustments of Complaints 41 

Therefore, if the present application is granted, it will increase 
this capital stock to $10,000.00. Upon representation made by their 
Attorney, Mr. George T. Davis, in letter of May 5, 1938 to this Com- 
mission, it is apparent that the capital increase proposed is not exces- 
sive and is in the interest of convenience and necessity to that com- 
munity in obtaining the proper electric service. 

Therefore, it is ordered that a petition for authority to increase 
the capital stock in the sum of $5,000.00 is hereby granted. 

This the 18th day of May, 1938. 

Stanley Winborne, 

Utilities Commissioner. 
Docket No. 308. 

APPLICATION OF PAMLICO ICE & LIGHT CO. FOR APPROVAL 
OF THE REFINANCING OF ITS PRESENT INDEBTEDNESS FOR 
AUTHORIZATION TO BORROW AN ADDITIONAL SUM FOR 
NEW CONSTRUCTION FROM THE RURAL ELECTRIFICATION 
ADMINISTRATION. 

Order 
It has been made to appear to this Commission, by petition duly 
filed this day, that the Pamlico Ice & Light Co. is a corporation duly 
organized under the laws of the State of North Carolina, with its 
principal place of business at Engelhard, North Carolina. 

It further appears that the total number of shares of common stock 
outstanding is 100, with a par value of $50.00 each. 

It further appears that on the 1st day of June, 1935, in order to 
complete its original building program, the said Company borrowed 
$30,000.00, evidenced by two negotiable promissory notes in the 
amounts of $10,000.00 and $20,000.00, respectively, which have not 
been paid and which are secured by a deed of trust on all the prop- 
erties of the corporation. 

It further appears that on the 28th day of March, 1936, in order 
to enlarge the transmission system and extend its electric lines, an 
additional $15,000.00 was borrowed, evidenced by a negotiable promis- 
sory note, also secured by a deed of trust on all of its properties. 

It further appears that said corporation desires to construct addi- 
tional power lines, to-wit: (1) One 3-phase line from Engelhard, 
North Carolina, to Manns Harbor, and to Stumpy Point, and (2) A 1- 
phase line from Engelhard to Fairfield, North Carolina, and that ap- 
plication has been made to the Rural Electrification Administration, 
Washington, D. C, for a loan in an amount not to exceed $42,000.00, 
in order to raise funds with which to construct said power lines. 

It further appears that the said Rural Electrification Administra- 
tion has agreed to make said loan for the construction of these lines 
upon the following conditions: 

(1) That the Pamlico Ice & Light Company issue additional com- 
mon stock in an amount of $5,000.00, the proceeds of which to be 
applied on the payment of outstanding open accounts. 



42 N. C. Utilities Commission 

(2) That the Pamlico Ice & Light Company execute a first lien 
on all new lines to be constructed with the money borrowed, and a 
second lien on all of the other properties. 

(3) That the Pamlico Ice & Light Company re-finance the liens 
above referred to dated the 1st day of June, 1935, and the 28th day 
of March, 1936, respectively, so that the same shall be payable in 
$5,000.00 annual installments, the first of which to mature on the 1st 
day of January, 1940 or 1941, and one to mature each consecutive 
year thereafter until the full sum of $45,000.00 has been paid. 

It further appears that the Rural Electrification Administration has 
already prepared the Construction Loan Contract and that same is 
now in the hands of the Pamlico Ice & Light Company to be properly 
executed when approval is received from this Commission. 

Upon a consideration of all the facts and circumstances and from 
the knowledge which this Commission has of the progress and devel- 
opment in the section which it serves, the Commission is satisfied that 
the things prayed for in the petition will be both to the interest of 
the Pamlico Ice & Light Company and to the community served by 
said corporation and to the interest of the State. 

Wherefore, the Pamlico Ice & Light Company is authorized by 
this Commission: 

First: To refinance its present outstanding indebtedness, as secured 
by liens in the amount of $45,000.00, by executing a first lien in the 
form of a deed of trust on all of its properties and present holdings. 
Said obligation to be paid in not less than nine (9) annual install- 
ments of $5,000.00 each, the first of which to mature January 1, 1940 
or 1941, in the discretion of the corporation, with interest at 6% 
per annum, payable semi-annually. 

Second: To borrow the sum of not to exceed $42,000.00 from the 
Rural Electrification Administration to be used in constructing new 
electric distribution lines, as hereinbefore set out, and to secure the 
payment of said loan by executing the necessary papers, liens and 
securities which may be required by the Rural Electrification Adminis- 
stration. 

This the 18th day of June, 1938. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
Docket No. 308. 

CITIZENS OF BRYSON CITY 

VS. 

SMOKY MOUNTAIN POWER COMPANY 

Order 
The above entitled matter came on for hearing before the Com- 
mission on Tuesday, July 7th, 1936, at 10 o'clock A.M., upon a petition 
duly filed by various citizens of Bryson City, North Carolina, on the 
5th day of December, 1935, asking that there be a general reduction 



Decisions and Adjustments of Complaints 43 

in the rates charged by the Smoky Mountain Power Company for 
electric current sold by said Power Company to consumers within 
Bryson City. 

Before filing answer the Smoky Mountain Power Company, here- 
inafter referred to as the respondent, entered a special appearance 
and asked that the case be dismissed for want of jurisdiction on the 
part of this Commission to pass upon the issues involved, for the rea- 
son that while the plant and distribution system in Bryson City was 
operated by the respondent, as lessee, the title to said properties was 
in the municipality and, therefore, the rates for the service were not. 
subject to review by this Commission. 

A ruling upon said motion was deferred without prejudice until 
the matter was heard, the respondent reserving all rights under its 
motion, filed answer to the petition on the 24th day of December, 1935. 

This case was heard by Stanley Winborne, Commissioner, sitting 
alone. 

The petitioners were represented by: 

J. M. Moody, Esq., Murphy, N. C. 
McKindley Edwards, Esq., Bryson City, N. C. 
J. C. Crawford, Esq., Bryson City, N. C. 

The respondent was represented by: 

J. Howell Green, Esq., Decatur, Ga. 
Judge T. D. Bryson, Durham, N. C. 
T. D. Bryson, Jr., Esq., Bryson City, N. C. 
E. C. Bryson, Esq., Durham, N. C. 

Motion to Dismiss for Lack of Jurisdiction 

The question of lack of jurisdiction of this Commission to pass 
upon the rates charged by respondent in Bryson City was argued at 
length by the attorneys for both the respondent and the petitioners, 
in which argument it was made to appear: That on July 2nd, 1929, 
the Town of Bryson City, a municipal corporation acting by and 
through its Mayor and Board of Aldermen entered into a contract 
of lease with one G. C. Dugas, which was later ratified by a majority 
of the qualified voters of the Town of Bryson City at a Special Elec- 
tion, duly held on the 2nd day of July, 1929, whereas by the terms 
of said lease, for a period of thirty years from July 1st, 1929, the 
Town of Bryson City "conveyed" to the lessee, or his assignee, all 
real estate rights, equipment and appliances (particularly enumerated 
in said contract) in any way connected or used in connection with 
the Electric Generating Plant and Electric Transmission and Dis- 
tribution System, which was then owned by the Town of Bryson City, 
for a consideration of $12,500 per annum for the first ten years and 
$15,000 per annum for the remaining twenty years of said lease; said 
payments to be made annually in advance. As further consideration, 
the lessee agreed to install an additional power unit in the power house, 
of equal or greater size in capacity than the one then there, within 
ninety days from the execution of the lease. The lessee further agreed 
to make all necessary improvements and extensions of lines and serv- 
ice as conditions might require and that at the expiration of said lease 



44 N. C. Utilities Commission 

all improvements and additions should become the property of the 
Town of Bryson City. 

It was further agreed that the lessee, during the period of said 
lease, should furnish power and light at rates not in excess of the 
schedule of rates then in effect and published with the exception of 
rates set forth on the last two pages of the published Rate Book. A 
copy of said Rate Book is attached to the contract. 

It was also agreed that the lessee should furnish the Town of 
Bryson City current for street lighting and water pumping at the rate 
of 3 cents per kwh throughout the term of the contract. 

It was further agreed in said contract that the lessee should not 
serve with current generated at said plant, territory beyond a radius 
of twenty miles from the center of the Public Square of Bryson City, 
and that the requirements within the corporate limits should be sup- 
plied before any current could be sold outside of said town. 

It was further agreed that the Town of Bryson City would grant 
to the said lessee and his assigns an exclusive thirty year franchise 
for the sale of electricity within the present city limits and to ex- 
tend said franchise as said city limits may be extended. 

On August 3rd, 1929, the said G. C. Dugas transferred and as- 
signed his rights under said lease to Smoky Mountain Power Com- 
pany, the respondent in this action. The foregoing constitute the 
pertinent facts upon which motion to dismiss was made. 

In the very able brief of the respondent, filed with this Commis- 
sion on February 15th, 1937, numerous cases are cited where the 
Courts have held that Commissions, such as this, have only such pow- 
ers as are expressly granted by statute, and that any reasonable 
doubt of the existence in said Commissions of any particular power 
should be resolved against their exercise of such power. 

It is then contended that the only regulatory powers conferred 
upon the Utilities Commission of North Carolina, are those set out in 
Chapter 134 of the Public Laws of 1933, and that the only authority 
conferred upon said Commission to regulate electric light and power 
companies is that provided for in Section 3, sub-section (3) of said 
Act, wherein it is stated that the Utilities Commission shall have gen- 
eral supervision over the rates charged and the service given "by 
electric light, power, water and gas companies and corporations, 
other than such as are raunicipally owned or conducted." And that 
since it is admitted that the town of Bryson City still owns the gen- 
erating plant and distribution system within said town, although said 
system is operated by the respondent under lease, that this Com- 
mission has no jurisdiction over the rates charged and service given, 
for the reason in the words of the statute, it is expressly provided 
that where a plant is "municipally owned or conducted" this Com- 
mission shall have no supervision over the rates charged and the 
service given. 

It appears to be well settled law that this Commission has only 
such supervisory and regulatory powers as are expressly granted it 



Decisions and Adjustments of Complaints 45 

by statute. The cases cited by respondent and other cases examined 
by this Commission fully support the respondent in its position that 
unless this Commission is expressly granted the authority to regulate 
the rates and charges of the respondent within the corporate limits 
of the town of Bryson City, then this Commission is without juris- 
diction in this case. Therefore, in order that the jurisdiction of this 
Commission may be determined, it is necessary to consider the various 
statutes now in effect to ascertain to what extent and just what pow- 
ers the Legislature did grant this Commission, as expressed in the 
various sections of the law granting regulatory powers to the Com- 
mission. All of the powers conferred upon this Commission are not 
contained in Chapter 134, cited by the respondent. 

The respondent contends that in the granting to the Commission 
the power to regulate electric rates, as contained in Chapter 134, 
Section 3, Sub-section (3) of the Public Laws of 1933, the clause 
"other than such as are municipally owned or conducted," excludes 
from the jurisdiction of this Commission all electric light and power 
companies which are either owned or conducted by a municipality. 
In other words, that if a municipality owns its plant and leases it 
to a private utility which operates it along with its operations out- 
side of the municipality, this Commission has no jurisdiction over its 
operations or the rates charged by it within the municipality and that 
while this Commission would have authority to regulate the rates and 
service of the private utility, as in the instant case, in its operations 
outside of, and up to, the corporate limits of Bryson City, yet the 
rates in Bryson City are subject to no regulation whatever by any 
authority, for the reason that the title to the distribution system and 
generating station is in the town of Bryson City. The respondent 
makes a point of the use of the word "or" and argues that if the 
statute read "owned and conducted," instead of "owned or conducted," 
that then this Commission would have authority to regulate the rates 
and charges of a lessee of a municipally owned plant which conducted 
its operations, but that the Legislature expressly took from the Com- 
mission any authority to regulate the rates and charges of the re- 
spondent, by using the word "or" instead of "and," and that in the 
case before us, under the contract of lease, the rates which were es- 
tablished in the peak period of prosperity shall remain sacrosant and 
beyond regulation for a possible period of 30 years, although the rates 
just outside of the corporate limits where service is rendered by the 
same utility are subject to regulation by this Commission. 

To follow this argument of the respondent, which would lock the 
rates within the town of Bryson City and permit regulation of the 
rates in the surrounding territory, all served by the same utility, 
would result in the violation of the mandatory provision contained 
in Chapter 307, Section 6, Public Laws 1933, which provides: "That 
no utility shall, as to rates or services, make or grant any unreason- 
able preference or advantage to any corporation or person or subject 
any corporation or person to any unreasonable preference or ad- 
vantage. No public utility shall establish or maintain any unreason- 
able difference as to rates or services either as between localities or 



46 N. C. Utilities Commission 

as between classes of service." All of which means, as this Commis- 
sion sees it, that where a utility serves a section, whether a part of 
its plant is leased from a municipality or not, there can be no distinc- 
tion made in rates for the same sort of service throughout the entire 
territory served by the utility. Therefore, applying this section to the 
Instant case, either this Commission is authorized and commanded to 
make the rates within and without Bryson City the same, for the 
same class of service, or else if the position of the respondent is sus- 
tained that this Commission has no jurisdiction over the rates in 
Bryson City, it must follow that this Commission could not even reg- 
ulate the rates outside of Bryson City, because it might result in a 
discrimination between the customers of the utility, thereby locking 
the rates charged by the utility throughout the entire territory served. 

This Commission can not accept the respondent's interpretation of 
the statutes, nor does it believe that the Legislature intended to deny 
this Commission jurisdiction to regulate the rates of a public utility 
in serving under lease a municipality which owns but does not con- 
duct its own plant. 

In the opinion of this Commission, Section 3, Sub-section (3) of 
Chapter 134, Public Laws 1933 and Chapter 307, Section 6, Public 
Laws 1933, must be construed together to determine the true legis- 
lative intent. In Section 6, supra, the Legislature makes no difference 
between a public Utility serving partly a municipally owned plant 
and the outlying territory, but says definitely there shall be no dis- 
crimination between its customers in the entire territory served. 
Therefore, when the Legislature said previously at the same Session, 
that this Commission should have no authority over electric companies 
municipally owned or conducted, in order that said two statutes may 
be harmonized, the only rational interpretation to be placed upon the 
words "owned or conducted" is that the Legislature intended to say 
"owned and conducted." It is clear that the Legislature had in mind 
that where a municipality both owned and conducted its own plant, 
it should regulate its own rates; or where it did not own its plant, 
but purchased power or leased facilities from a private company and 
conducted its own operations, that it would not be under the juris- 
diction of this Commission. The word "or," therefore, in the opinion 
of this Commission, was loosely used and should be construed "and." 

Such a construction of the word "or" is not at all unusual in con- 
struing statutes. In Long vs. Jerzewsky, 257 N. Y. S. 371, he Court 
says: "The word 'or' may be construed 'and,' and vice versa, where 
the change better expresses legislative intent." In Vol. 25 Ruling Case 
Law, p. 977, we find the editor quoting from a Court decision as fol- 
lows: "In the interpretation of statutes the Courts have frequently 
held the word 'or' to mean 'and'." Further on in the same text we 
find this statement: "The use of 'or' and 'and' is so loose and frequent 
that it has infected statutory enactments, and their strict meaning is 
more readily departed from than that of other words." 

In the case of Manson vs. Dayton, 153 Fed. 258, it was decided, 
and many cases cited therein supporting the decision, that: "To pre- 



Decisions and Adjustments of Complaints 47 

vent an absurd or unreasonable result, the word 'or' used in a con- 
tract may be read 'and'." 

We have not been able to find any case in North Carolina exactly 
in point, but do find that in State vs. Walters, 97 N. C. 489, our Court 
held that: "The word 'or' in criminal statutes can not be interpreted 
to mean 'and,' when the effect is to aggravate the offense or increase 
the punishment." This decision by inference recognizes that there are 
cases wherein the word "or" may be construed "and." 

The Commission has carefully considered the cases cited by the 
respondent in support of its position that, under the wording of the 
statute, the Commission has no jurisdiction where the utility either 
owns or operates its electric system, but in view of the interpretation 
of the statutes by this Commission, as heretofore stated, the motion to 
dismiss for want of jurisdiction is denied. 

Having held adversely to the respondent on its motion to dismiss 
the petition for want of jurisdiction, the case is now before the Com- 
mission for consideration upon its merits. The issues raised by the 
pleadings are as follows: 

1. Are the rates charges by the respondent unjust? 

2. Are the rates charged by the respondent unreasonable? 

3. Are the rates charged by the respondent unjustly discrimina- 
tory? 

The affirmation of each of these issues is maintained by the peti- 
tioner and denied by the respondent. 

The first two issues as to whether rates are unjust and unreason- 
able are so interrelated and interdependent that they will be con- 
sidered together. 

In order to determine whether or not rates are unreasonable and 
unjust, it must first be ascertained what is the fair value of all of the 
properties used and useful (and actually u.sed) in rendering the serv- 
ice. Further it must be determined whether the gross income produces, 
after deducting reasonable administrative costs, proper amounts for 
maintenance, depreciation, taxes, going concern value and other neces- 
sary expenses recognized by law as proper deductions, a fair return 
upon a fair value of the properties. 

The reasonable value, when determined, forms the rate base and, 
under the law, the rates must be fixed so as to produce a fair return 
upon the reasonable value. In reaching a conclusion as to what is a 
reasonable va'ue of the properties, consideration must be given to 
original cost of construction, the amount expended in permanent im- 
provements, the present day cost of reproducing the properties, the 
accrued depreciation, what part of the properties are actually used 
and needed in rendering the service to the public and all other perti- 
nent facts which may aid in determining what is the true and reason- 
able value of the properties at the time the rates are made. 
• For the purpose of showing the original cost of the properties, the 
petitioner first offered the deposition of Dr. Charles E. Waddell, Engi- 
neer in charge of construction and employed by Bryson City at the 
time the power plant was constructed. Dr. Waddell testified that the 



48 N. C. Utilities Commission 

total cost of the Bryson City Power Plant at the time of its construction 
in May, 1925, exclusive of land but including the transmission line 
from the power plant to Bryson City, was $190,175.34; that later there 
were some extensions made which increased the approximate cost of 
the power plant and transmission line to $200,000.00. Dr. Waddell 
made no attempt to give the cost of the distribution system within 
Bryson City, the cost of the new unit which was constructed by the 
Smoky Mountain Power Co., subsequent to the lease, the present repro- 
duction cost of any of the properties, nor the amount of accrued 
depreciation. 

From the testimony of Dr. Waldroup, also in the form of a deposi- 
tion, it was developed and finally admitted, that all of the land owned 
and used by the Smoky Mountain Power Co., or owned by the Town 
of Bryson City and used for the power plant, cost $13,435.00. 

The cost of the distribution system within the Town of Bryson City, 
according to the testimony of Dr. Waldroup, was approximately 
$3,000.00; but this valuation is based upon the witness' opinion and 
not upon actual knowledge. 

From the foregoing testimony of the petitioners' witnesses, the 
original cost of the power plant and transmission line and extensions 
was $200,000.00, the land $13,435.00 and the original distribution sys- 
tem $3,000.00, making the total original cost $216,435.00. To this 
amount should be added, according to the petitioner's contention, the 
admitted cost of the new unit constructed by the Smoky Mountain 
Power Co. subsequent to the lease, outside of the Town of Bryson City, 
of $23,991.20, according to the testimony of the respondent's witness, 
E. D. Lester, thereby making a grand total of $240,426.20, as represent- 
ing the original cost of all of the properties of the Smoky Mountain 
Power Company, according to the testimony of the petitioners' wit- 
nesses, plus the cost of the new unit, as testified to by the respondent's 
witness, Lester. 

Aside from the cost of the new unit, $23,991.20 and that of the land 
$13,435.00, the respondent contends that the present reproduction value 
of the properties is much greater than the original cost given by the 
petitioners' witnesses and to establish the present reproduction cost less 
depreciation of all of the properties of the Smoky Mountain Power Co., 
the respondent offered testimony of Mr. Curtis A. Mees, a consulting 
engineer who was employed by the respondent the week before the 
hearing to estimate the value of the properties. Mr. Mees testified that, 
on Saturday and Sunday just preceding the hearing, he inspected the 
power plant and distribution system, examined the records of the Com- 
pany, used the 1924 Contract of Dr. Waddell as a base and reached the 
conclusion that the present reproduction cost new of the power plant 
and land would be $160,144.00. To this amount he added the cost of 
transformers, lightning arresters, sub-stations, transmission line and 
$10,000.00 for supervision fee, making a total of $199,809.00. To this 
amount the witness Mees further added 2 % organization expense, 1 % 
legal expense, 6% interest during construction, thereby increasing the 
total to $212,000.00. 



Decisions and Adjustments of Complaints 49 

The 11.3 miles of distribution system within Bryson City would 
cost, according to the opinion of the witness Mees, $1,400.00 per mile 
to reproduce new, including cut-ins to the customers. Then to the new 
total was added 12% or $17,900.00 for overhead and $25,700.00 for the 
new unit, making a grand total of $275,282.00 as the reproduction cost 
of all of the properties of the Smoky Mountain Power Co., according to 
the testimony of the witness Mees. To this amount other items were 
added and 'depreciation deducted, until finally the conclusion was 
reached by the witness that the present reproduction cost new, less 
depreciation of all of the properties of the Smoky Mountain Power Co. 
was $299,500.00, and to this amount the witness testified there should 
be added the amount of $29,500.00 for going concern value. 

From a very careful analysis of the testimony of the witness Mees, 
the Commission is definitely of the opinion that the valuation placed 
on said properties by him are unreasonably high and the amounts 
deducted by him for depreciation are much too small. With the excep- 
tion of the new unit, the entire plant was constructed and materials 
purchased in 1925, when prices were about as high as this country has 
ever known, and the original cost of the properties at that time were 
far greater than the cost of reproducing the properties new when this 
case was heard. Furthermore, these properties, with the exception of 
the new unit, are 16 years old and there is some evidence that a part 
of the distribution system was built in 1911. Very little has been spent 
upon repairs and the property has been allowed to deteriorate until, 
quoting from the witness Mees, "Water is already under part of the 
pier and section of the taintor gates; it is washed out on the lower side 
of the dam." When asked if there had not been a sufficient amount of 
erosion to go through the dam, the witness replied: "I doubt whether it 
will, but the dam may fall; if it goes too far the dam may go over." 
Further testifying concerning depreciation, the witness Mees stated: 
"On the water wheels the rimmers are very badly worn." 

In further discussion the depreciation observed on his two days 
inspection of the plant, the witness Mees gave as his opinion that the 
total depreciation on all of the properties of the respondent Company 
was $12,700.00. In breaking down this amount, it is found that the 
items are as follows: Depreciation of the dam, $7,500.00; distribution 
system, $5,000.00; meters $200.00; cut-ins, $1,000.00; transmission line, 
$2,500.00; sub-stations, $1,000,000; the water wheels, $2,000.00 and 
miscellaneous, $1,000.00, making a total of $17,200.00, instead of 
$12,700.00 testified to by Mr. Mees. Even this amount, when considered 
in the light of the condition of the dam and other properties, as 
described by Mr. Mees, appears grossly inadequate to place the proper- 
ties in A-1 condition. Furthermore, it is inconceivable to this Commis- 
sion that these properties, constructed at a time when price levels were 
much higher than now and in the deteriorated condition described by 
Mr. Mees, could be worth more today than when originally constructed 
in 1925. In fact, this Commission believes that the figures given by Dr. 
Waddell, as the original cost of the properties constructed by him, plus 
the cost of the land, the new unit and the cost of the distribution sys- 
tem, result in a value considerably greater than the present reproduc- 



50 N. C. Utilities Commission 

tion cost, less the accrued depreciation. Considering the decline in the 
cost of construction of power plants and of all materials and equipment 
used in connection with the construction of the power plant and distri- 
bution system, the age of the plant and distribution system, the deterio- 
rated condition of the dam and the distribution system, and the rapid 
decline in land values since 1925, the Commission finds that a fair 
value for the various properties are as follows: 

1. For the power plant, the transmission line from the plant to the 
Town of Bryson City and the other extensions, including 
$10,000.00 engineering fee, which the witness Waddell testified 
actually cost $200,000.00 in 1925, the reproduction cost new at 
this time, less depreciation, is found to be $150,000. 

2. The value of the land, which it was admitted, cost $13,435.00 in 
1925 and which is located in a mountain gorge and is the reser- 
voir of the power plant, is found to be, at this time, $5,000.00. 

3. The distribution system which consists of 11.3 miles and part 
of which was constructed, according to the testimony, in 1911 
and the major part in 1925, the value of which ranges, from 
the testimony of the witness, from $3,000.00 to $15,000.00, 
the Commission finds the reproduction cost new, less deprecia- 
tion, to be $7,000.00. 

4. The new unit which was constructed in 1929, at a cost of 
$23,991.20, the Commission finds the reproduction cost new, 
less depreciation, to be at the same rate which the respondent 
Company charges per year as an operating expense for depre- 
ciation of the new unit, namely, $1,194.14, to be $15,597.53. 

5. The new pole line, consisting of 2V2 miles pole line and East 
from Whittier approximately % of a mile on the Camp Creek 
Road, the extension in Toot Hollow and the street light exten- 
sion in Bryson City which, according to the testimony, cost 
$2,942.41 and on which, according to the respondent's wit- 
nesses, there was already an accrued depreciation of $485.89 
one year ago, the Commission finds the present value, after 
having deducted the depreciation at the same rate for another 
year, to be $2,213.71. 

6. The Cherokee Rural Line, consisting of approximately five 
miles of transmission line and % of a mile of distribution line 
with transformer and lightning arresters which, according to 
the testimony of the respondent's witnesses, cost originally 
$6,575.06, on which where was, a year ago, accrued deprecia- 
tion, according to the testimony of the respondent's witnesses, 
of $2,191.68, the Commission finds the present value, after de- 
ducting the depreciation at the same rate for another year, to 
be $3,835.46. 

7. The Whittier rural line which, according to the testimony of 
the respondent's witnesses, originally cost $4,500 in the latter 
part of 1929, the Commission finds the reasonable present 
value, less depreciation at 3% for the years 1930-1936, inclu- 
sive, to be $3,690.00. 

The total value of all seven items listed above is $187,336.70, which 
the Commission finds to be the reproduction cost new of all the proper- 
ties of the respondent Company, less depreciation, and which amount is 
hereby declared the rate base upon which the respondent Company is 
entitled to earn a fair return. In the above valuation is included what 
the Commission believes to be fair to cover all engineering costs, going 
concern value, interest during construction, and all other items upon 
which the respondent Company is entitled to earn a return, but in 



Decisions and Adjustments of Complaints 51 

order that these amounts may be amply covered, the rate base is 
increased to $195,000.00. 

Having found the value of all the properties of the respondent Com- 
pany, it now becomes necessary to determine what is the proper annual 
operating expense. 

In the "Profit and Loss" statement of the respondent Company, 
filed with this Commission, covering a period from June 30, 1935 to 
June 30, 1936, the total gross income is shown to be $34,141.34. The 
same statement shows that the operating expenses of said Company 
are $35,320.20. An analysis of the operating expenses reveals, however, 
many items which, in the opinion of the Commission, should not be 
included in the operating expenses. 

The item of $12,499.92, charged to operation, is for yearly rent paid 
by the respondent Company to the Town of Bryson City, under the 
terms of the lease. So far as this case is concerned, it makes no differ- 
ence what amount the respondent pays under its lease contract. The 
case was tried upon the theory, and properly so, that if this Commis- 
sion had jurisdiction over the rates of the respondent Company, that it 
should be treated as though it were the owner of all of the properties 
and a determination made as to the reasonable value of the properties 
upon which the Company was entitled to a return. The respondent 
admits in its brief that "The trend of the decisions indicates that prop- 
erty leased by a public utility should be valued on the same basis as 
other property, the rental for such property, under the lease, being 
excluded from operating expenses." Several cases are cited by the 
respondent in support of the above position, with which this Commis- 
sion fully concurs. 

For the same reason, the item of $563.31, for interest and discount 
paid to banks on money borrowed by the respondent to pay the yearly 
rent, is likewise an improper charge. The two items together total 
$13,063.23. 

The item of $4,800.00, which the Company has been paying in 
salaries to the two McCrary brothers, $3,000.00 to one and $1,800.00 
to the other, in the opinion of this Commission, is excessive. These men 
are officers of the respondent Company but, according to the testimony, 
only very occasionally visited the plant and are engaged in other busi- 
nesses elsewhere. The supervision and management of the plant is left 
to others, who are paid fair salaries. Furthermore, it appeared in evi- 
dence that J. B. McCrary Company, a firm of which the said McCrary 
Brothers are also officers, furnished engineering service to the Smoky 
Mountain Power Co., for which they received liberal fees. 

In the opinion of this Commission $1,200.00 a year is a fair salary 
for Mr. J. B. McCrary and $600 a year for Mr. J. A. McCrary, and no 
greater salaries should be charged to operating expenses unless and 
until the income of the Company, under the rates hereinafter set forth, 
increases sufficiently to justify greater salaries than $1,200.00 and 
$600.00 a year, respectively, for these officers. This deduction in salaries 
further reduces the opexating expenses in the amount of $3,000.00 a 
year. 



52 N. C. Utilities Commission 

The last item charged as an operating expense is that of $1,883.83 
for discount on 188 shares of Preferred Stock. Discounts on stock or 
stock dividends are never chargeable as operating expenses, but are 
only payable from net profits which may accrue from a reasonable 
return upon a fair valuation of the properties. If this were not true, the 
consumer could be forced to pay exorbitant rates in order that the 
utility might pay dividends on worthless stock. Rates are not fixed on 
the amount of outstanding stock but on a reasonable value of the 
properties. 

The total of the amount disallowed in the operating expense 
account, as hereinbefore enumerated, is $18,007.06. Taking this amount 
from the $35,320.20, we find the proper operating expenses of the 
Company to be $17,313.14. Deducting $17,313.14 from the gross income 
of $34,141.34, we find the net profit of the respondent Company for 
the year ending June 30, 1936, to be $16,828.20. 

Allowing the respondent 6%, or $11,700.00 on $195,000.00, the 
amount which has been found to be the proper rate base and deducting 
the $11,700.00 from the $16,828.20, which has been found to be the 
net profit of the respondent Company, there is a balance of $5,128.20 in 
excess of a fair return available for rate reductions. 

The schedules of rates now charged by the respondent Company 
became effective upon the execution of the lease in July 1929, and by 
agreement were then made the same as those charged by the Carolina 
Power & Light Co. in the City of Asheville. These rates, and especially 
the schedule of rates for domestic service are out of line with present 
day rate structure and not only preclude the consuming public from 
enjoying the freer use of electricity but, at the same time, prevent the 
respondent Company from receiving the amount of revenue which, 
in the opinion of this Commission, it will receive by modernization of 
the entire rate structure. An additional charge for service, depending 
upon the number of rooms in a house or a different rate when one 
appliance is used than is charged when another appliance is used, this 
Commission has found to be unfair to the consumer and only of doubt- 
ful advantage to the utility. Therefore, the entire domestic, or residen- 
tial and commercial schedules are cancelled throughout the entire 
territory served, except on the Indian Reservation transmission line; 
the room rent charge eliminated and the combination and lighting rates 
merged in the new residential rate, which is available to residential 
customers for all purposes, as follows: 

Residential Rate Schedule 

First 12 kwhrs $1.20 

Next 38 kwhrs. @ 5c per kwh. 

Next 100 kwhrs. @ 3c per kwh. 

Excess kwhrs. @ 2y2Cperkwh. 

Minimum $1.20 

Commercial Rate Schedule 

First 12 kwhrs $1.20 

Next 38 kwhrs. @ 6c per kwh. 

Next 250 kwhrs. @ 5c per kwh. 

Next 100 kwhrs. @ 4c per kwh. 

Excess kwhrs. @ 3c per kwh. 

Minimum $1.20 per month. 



Decisions and Adjustments of Complaints 53 

Power for Wood Turning Plants 
Schedule W. T. P. 

The only change ordered in this schedule is under the heading 
CONTRACT horse POWER. The present schedule provides: "The contract 
horsepower under this schedule shall be the horsepower demand 
as determined under the provisions of Rule 4 in the Rules and 
Regulations." From the effective date of this order, Rule 4 is abrogated, 
so far as it applies to the period of determining the demand and it is 
hereby ordered that the kilowatt demand for billing purposes shall be 
the average of the daily kilowatt of demand which occurred during 
the month, for which the bill is rendered. The rates under this schedule 
were reduced by this Commission August 26, 1935 over the protest of 
the respondent. 

Large Miscellaneous Power 
Schedule L. M. P. 

The only change ordered in this schedule is under the heading 
CONTRACT HORSE POWER. The present schedule provides: "The contract 
horsepower under this schedule shall be the horsepower demand as 
determined under the provisions of Rule 4 of the Rules and Regula- 
tions." From the effective date of this order, Rule 4 is abrogated, so 
far as it applies to the period of determining the demand and it is 
hereby ordered that the kilowatt demand for billing purposes shall 
be the average of the daily kilowatt of demand which occurred during 
the month, for which the bill is rendered. 

The Commission finds that no changes in any schedule, other than 
as heretofore mentioned, is justified. The aggregate reduction made in 
the residential and commercial rates and in the change in the manner 
of determining the power demand, as hereinbefore set out, will amount 
to, according to the calculations of the Commission, based upon the 
amount of electricity heretofore consumed, approximately $4,500.00 
per year. 

No reduction has been made in the rate charged by the respondent 
Company for current consumed by the Town of Bryson City, for the 
reason that, in the opinion of the Commission, this rate is not as pro- 
portionately high as the $12,500.00 which the respondent Company 
now is obligated to pay to the Town of Tryson City each year, under 
the lease agreement and which amount will be increased to $15,000.00 
within the next few years. The rate which the Town of Bryson City is 
paying the respondent Company for municipal purposes and the 
amount which the respondent Company agreed to pay to the Town of 
Bryson City, under the lease, were both fixed during the peak period 
of 1929 and this Commission has no power to reduce the annual pay- 
ment by the power Company to the town and, therefore, it does not 
feel that it would be fair and just to reduce the amount which the town 
at the same time agreed to pay the respondent Company for current 
for municipal purposes. While this Commission has no authority over 
llie lease consideration and is not hereby attempting to exert any, yet 
it feels strongly that, under the present changed conditions, the Town 
of Bryson City should give serious consideration to the reduction of 



54 N. C. Utilities Commission 

the $12,500.00 which the respondent Company is now paying yearly 
to the town and which, under the contract, will increase to $15,000.00 
within the next few years. If $12,500.00 was a fair annual rental for 
the properties, according to values prevailing at the time the lease was 
made and the rates agreed upon, then it seems quite obvious that it is 
excessive upon the values found by this Commission at this time and 
the rates hereinbefore fixed should, in equity and good conscience, 
be voluntarily reduced by the Town of Bryson City. 

Since this order was written down to this point, it has been sug- 
gested to this Commission, by letter dated April 19, 1937, that the 
respondent Company has been notified by the Revenue Department of 
this State that the Company is liable for gross receipts taxes, which 
it has not paid, and this Commission is asked to take into consideration, 
in arriving at its conclusions in this case, a proper amount for gross 
receipts taxes, which may hereafter be assessed against the respondent 
Company. 

It is true that the statement of operating expenses, submitted at 
the hearing of this cause, contained no amount for gross receipts 
taxes, but since there is no evidence before the Commission as to what 
the gross receipts taxes are or will be, and since it has not been even 
at this time determined what the gross receipts taxes may be, the 
Commission can not consider and allow an arbitrary amount which 
may hereafter be assessed against the respondent Company by the tax 
authorities of the State. Whenever these taxes are assessed and paid, 
the facts may hereafter be shown in another proceeding and will then 
be considered by this Commission in the light of the financial condition 
of the respondent Company at the time the matter is presented. 

Wherefore it is ordered, that the schedules of rates for residential 
and commercial service hereinbefore fully set out and the changes in 
the manner of determining the demand in the schedule W. T. P. and 
the schedule L. M. P., as hereinbefore set out, shall be in effect on all 
meter readings on and after May 20, 1937. 

This the 21st day of April, 1937. 

(Signed) Stanley Winborne, 

Commissioner. 

Docket No. 620. 

CITIZENS OF BRYSON CITY VS. SMOKY MOUNTAIN POWER 
COMPANY. 

Amendment to Order 

Whereas, in the order entered in this cause on April 21st, 1937, the 
rates provided for in said order were made effective on all meter read- 
ings on and after May 20, 1937; and whereas, since the rendition of 
said order it has been made to appear to the Commission that the 
usual time for reading meters is on the last day of the month and that 
to comply with the terms of the original order would necessitate the 
reading of meters for a period covering less than a month and there- 
after create a new meter reading date; 



Decisions and Adjustments of Complaints 55 

It is now therefore ordered, that said order entered in this cause 
on April 21st, 1937, be and the same is hereby amended by striking 
out "May 20th" and inserting in lieu thereof "May 31st" in the last 
paragraph of said original order. 

This the 1st day of May, 1937. 

(Signed) Stanley Winborne, 

Commissioner. 
Docket No. 620. 

APPLICATION OF THE TIDE WATER POWER COMPANY TO THE 
UTILITIES COMMISSION FOR CERTIFICATE OF PUBLIC CON- 
VENIENCE AND NECESSITY AND FOR APPROVAL OF AMEND- 
MENT OF LOAN CONTRACT WITH THE UNITED STATES OF 
AMERICA. 
This matter comes before the Utilities Commission upon an appli- 
cation of the Tide Water Power Company asking for a Certificate of 
Public Convenience and Necessity for the construction of certain rural 
lines in the Counties of Greene, Craven, Pamlico, Lenoir, Carteret, 
Duplin, Sampson, Pender, Onslow and Columbus and New Hanover, 
along certain definite routes between certain definite points set out 
in particular, with the mileage of each proposed construction, in an 
Exhibit filed with the petition and now of record with the Commission; 
also for the approval of an Amendment of Loan Contract between the 
Tide Water Power Company and the United States of America, (the 
original contract covering a loan of $142,250.00, and which said con- 
tract was heretofore approved by an order of this Commission on or 
about the 20th day of February, 1936,) said Amendment of Loan Con- 
tract covering the difference between the cost of the construction of 
rural lines as set forth in the original contract and the amount of the 
loan covered thereby, or $142,250.00, said difference being approxi- 
mately $45,000.00. 

The Commission, having considered the petition of the Tide Water 
Power Company, together with the Exhibit and representations of the 
officers of the said Company, and having knowledge itself of the terri- 
tory to be served by the construction of said rural lines, is of the 
opinion that the said construction of each and all of said lines, as set 
out in the petition and shown on the Exhibit attached to said Amend- 
ment of Loan Contract between the Tide Water Power Company and 
the United States of America, will provide a much needed service and 
is necessary for the proper development of the territories proposed 
to be served. 

The Commission has examined and considered the proposed Amend- 
ment of Loan Contract between the Tide Water Power Company and 
the United States of America, under the terms of which the United 
States of America will advance to the Tide Water Power Company the 
sum of approximately $45,000.00, said sum being the difference 
between the note of $142,250.00 now held by the United States of 
America and issued by the Tide Water Power Company under order 
of this Commission on February 20, 1936, and the monies heretofore 



56 N. C. Utilities Commission 

advanced by the United States of America under said note and original 
Loan Contract and expended by the Tide Water Power Company in 
the construction of the rural lines shown in the Loan Contract, the 
said sum of approximately $45,000.00 to be used for the construction 
of rural electric lines in the Counties set forth in this order; and the 
Commission is of the opinion that the borrowing of said monies is for 
a lawful object within the corporate purpose of the utility, is com- 
patible with public interest, is necessary and appropriate for, or con- 
sistent with, the proper performance by the utility of its service to the 
public and will not impair its ability to perform that service, and is 
reasonably necessary and appropriate for such purpose, and that the 
same should be approved, upon the condition that nothing herein shall 
be construed to imply any guarantee or obligation on the part of the 
State of North Carolina as to the payment of said $45,000.00. 

Wherefore, it is ordered: 

1. That a Certificate of Public Convenience and Necessity be and 
the same is hereby granted to the Tide Water Power Company to con- 
struct and operate the rural electric lines set forth in the Exhibit 
attached to said Amendment of Loan Contract exhibited to this Com- 
mission. 

2. That the said Tide Water Power Company is hereby authorized 
and empowered to borrow from the United States of America acting 
by and through the Rural Electrification Administration the sum of 
$45,000.00 to be used for the purposes hereinbefore in this order set 
out. 

3. That the proposed Amendment of Loan Contract between the 
Tide Water Power Company and the United States of America acting 
by and through the Rural Electrification Administration, setting forth 
the terms and conditions under which said loan of $45,000.00 is made 
by the United States of America to the Tide Water Power Company, 
is hereby approved, and the said Tide Water Power Company author- 
ized and empowered to execute the same. 

This 25th day of May, 1937. 

Stanley Winborne, 

Utilities Commissioner. 
Attest : 

R. O. Self, Chief Clerk. 
Docket No. 672. 

APPROVAL OF CONTRACTS BETWEEN THE TIDE WATER POWER 
COMPANY AND THE UTILITIES PURCHASING AND SUPPLY 
CORPORATION; THE TIDE WATER POWER COMPANY AND 
THE E. M. GILBERT ENGINEERING CORPORATION; AND THE 
TIDE WATER POWER COMPANY AND THE UTILITY MANAGE- 
MENT CORPORATION. 

Order 
These matters come again before the Commission upon the applica- 
tion of the Tide Water Power Company for full approval of the follow- 
ing contracts: (1) contract between the Tide Water Power Company 



Decisions and Adjustments of Complaints 57 

and the Utilities Purchasing and Supply Corporation, dated August 
17, 1936; (2) contract between the Tide Water Power Company and 
E. M. Gilbert Engineering Corporation, dated September 1, 1936; 
and (3) contract between the Tide Water Power Company and the 
Utility Management Corporation, dated September 1, 1936. 

All three of these contracts have been previously approved by this 
Commission, the first-named on August 17, 1936 and the other two on 
September 25, 1936, subject to the stipulation within the contracts 
themselves that the said contracts were to continue for the period 
of one year, at the expiration of which time the said Tide Water Power 
Company was required to make a full report to this Commission of 
its experiences under each of said contracts. Upon the filing of said 
report and a consideration of same, it having been made to appear 
that the entire net cost to the Tide Water Power Company under all 
of said contracts being only 1.002%, that the charges are reasonable 
and that the contributions and dividends received are advantageous 
to the said Power Company; 

It is now, therefore, ordered that the said contracts, and each of 
them, be, and the same are hereby approved. 

It is FURTHER ORDERED that the Commissiou reserves the right, upon 
notice, to reconsider this order. 

This 26th day of November, 1937. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 

Docket No. 805. 

APPLICATION OF THE TIDE WATER POWER COMPANY AND 
THE ATLANTIC COAST LINE RAILROAD COMPANY TO THE 
UTILITIES COMMISSION OF THE STATE OF NORTH CAROLINA 
FOR APPROVAL OF THE SALE AND PURCHASE OF CERTAIN 
RAILROAD LINES AND PROPERTIES IN NEW HANOVER 
COUNTY, AND FOR AUTHORITY TO ABANDON AND CEASE 
OPERATIONS THEREON. 

Order 
This cause came on to be heard upon the petition of the Tide Water 
Power Company and the Atlantic Coast Line Railroad Company for 
the purpose of securing the approval of this Commission on the sale by 
the Tide Water Power Company of certain railroad and street railway 
properties of the Tide Water Power Company in the City of Wilming- 
ton, County of New Hanover, State of North Carolina, to the Atlantic 
Coast Line Railroad Company and an order authorizing the abandon- 
ment of said properties by the Tide Water Power Company and an 
order authorizing the abandonment by the Atlantic Coast Line Railroad 
Company of that part of said railroad properties referred to in the 
petition as the "Shipyard Line" and which extends from the point of 
connection with the Atlantic Coast Line Belt Line Southwardly to the 
city limits and thence along the Cape Fear River to the oil terminals 
South of the City of Wilmington; and having been heard and it appear- 
ing to the Commissioner that the Tide Water Power Company has 



58 N. C. Utilities Commission 

secured authority from the City of Wilmington to abandon operation 
of said railroad and street railway properties located within the City 
of Wilmington, and that franchises have been granted by the Com- 
missioners of the City of Wilmington to the Atlantic Coast Line Rail- 
road Company for the operation of said railroad and street railway 
properties described in the petition; and it further appearing to the 
Commissioner that for many years the "Dummy Line" and the "Ship- 
yard Line" have been operated by the Atlantic Coast Line Railroad 
Company under leases with the Tide Water Power Company and that 
the Tide Water Power Company has not the equipment to operate said 
lines of railroad. 

The Commissioner, being of the opinion and finding as a fact that 
the said railroad and street railway lines and tracks are not necessary 
for the operation and development of the Tide Water Power Company 
and that the continued ownership of said railroad and street railway 
properties and lines by the Tide Water Power Company is not neces- 
sary or desirable and would not be to the best interests of the Com- 
pany, and that a sale thereof by the Tide Water Power Company 
to the Atlantic Coast Line Railroad Company would be the best in- 
terest of the public. 

And the Commissioner further finding as a fact that the new line 
of railroad to be constructed by the Atlantic Coast Line Railroad 
Company from its Belt Line Southwardly to the oil terminals will 
parallel that part of the railroad properties to be purchased by the 
Atlantic Coast Line Railroad Company from the Tide Water Power 
Company known as the "Shipyard Line" and will serve the same 
properties more adequately and will permit the future growth of 
industries along the River front South of the City of Wilmington, and 
that upon completion of the said new track the "Shipyard Line" will 
be obsolete and of no use either to the Railroad Company or to the 
public generally. 

It is, therefore, ordered and adjudged that the sale by the Tide 
Water Power Company to the Atlantic Coast Line Railroad Company 
of that certain railroad and street railway property in the City of 
Wilmington, New Hanover County, described in the petition and the 
rights-of-way upon which the same is located and the franchises 
granted to and/or held by the Tide Water Power Company by the City 
of Wilmington to lay tracks and operate over certain streets in the City 
of Wilmington, North Carolina, be and the same hereby is in all 
respects approved. 

And it is further ordered and adjudged that the Tide Water 
Power Company be and it is hereby expressly authorized to abandon 
operation of those certain railroad and street railway properties 
described in the petition and which are to be sold to the Atlantic Coast 
Line Railroad Company from and after the date of this order. 

And it is further ordered and adjudged that the Atlantic Coast 
Line Railroad Company be and it is hereby expressly authorized, upon 
completion of a line of railroad extending from its Belt Line in the 



Decisions and Adjustments of Complaints 59 

Southern part of the City of Wilmington Southwardly along the Cape 
Fear River to the oil terminals South of the City, to abandon the 
operation of the railroad line known as the "Shipyard Line" purchased 
from the Tide Water Power Company. 

This 30th day of December, 1937. 

Stanley Winborne, 

Utilities Commissioner. 
Attest : 

R. O. Self, Clerk. 
Docket No. 1183. 

APPLICATION FOR ABANDONMENT AND SUSPENSION OF 
STREET CAR SERVICE AND SUBSTITUTION OF BUS SERVICE 
ON CERTAIN STREETS IN THE CITY OF WILMINGTON, NORTH 
CAROLINA. 

Order 

This cause coming on to be heard upon the Application of the Tide 
Water Power Company for the purpose of securing the approval of this 
Commission on the abandonment of street car service on the following 
streets in the City of Wilmington: on Red Cross Street from about 
Eleventh Street to Fourth Street, and on Front Street from Castle 
Street to Wright Street, and on Wright Street from Front Street to 
Third Street, and on Third Street from Wright Street to the Southern 
city limits of the City of Wilmington, and the substitution of bus 
service therefor, and for the approval of this Commission on the 
abandonment of street car service from the Southern city limits to 
the subdivision known as Sunset Park, and the substitution of buses 
therefor; and it appearing to the Commission that abandonment of said 
street car service was expressly authorized by the franchise issued to 
the Tide Water Power Company by the City of Wilmington on June 9, 
1937; and it further appearing that the abandonment of said street car 
service upon said streets and the substitution of motor buses therefor 
has provided an adequate system of transportation and permits the 
rendering of better service than could have been had under the con- 
tinuation of street car service along said streets, and that the said 
abandonment and substitution is to the best interest of the citizens of 
the City of Wilmington. 

The Commission finds as a fact that the said street railway lines 
abandoned as aforesaid are not necessary for the operation and devel- 
opment of the Tide Water Power Company and that the continued 
operation of said street car system over said streets is not necessary nor 
desirable and would not be to the best interest of the Company and is 
not injurious to the interest of the public. 

The Commission further finds as a fact that the substitution of bus 
service in place of said street car service abandoned as aforesaid will 
serve the public more adequately and will permit faster transporta- 
tion and greater elasticity of extension and will be to the best interest 
of the public. 



60 N. C. Utilities Commission 

It is, therefore, ordered and adjudged that the abandonment and 
suspension by the Tide Water Power Company of street car service 
upon the aforesaid streets in the City of Wilmington and from the city 
limits to Sunset Park, and the substitution of buses therefor be and 
the same is in all respects hereby approved. 

This 2nd day of March, 1938. 

Stanley Winborne, 

Utilities Commissioner. 
Attest : 

R. O. Self, Clerk. 
Docket No. 1233. 

APPLICATION OF THE TIDE WATER POWER COMPANY FOR 
APPROVAL OF A PLAN FOR PENSIONS FOR EMPLOYEES 
OF THE TIDE WATER POWER COMPANY. 

Order 

This cause coming on to be heard upon Application of the Tide 
Water Power Company for approval of a Pension Plan for Employees 
of the Tide Water Power Company, and it appearing to the Commission 
from the printed Pension Plan for Employees of Tide Water Power 
Company submitted with said application and from the Pension Trust 
Agreement, dated December 14, 1937, in which Employees Welfare 
Association, Inc. is party of the first part and Joseph A. Shields, Trus- 
tee, is party of the second part, also submitted with said application, 
and that the two documents constitute a Pension Plan which, for 
general purposes, provides for the contribution or depositing by the 
Tide Water Power Company of funds under said Pension Trust Agree- 
ment, which deposits are irrevocable and which, in accordance with 
the terms of the Trust Agreement and the Pension Plan for Employees 
of Tide Water Power Company, will be used to purchase annuity 
insurance for such employees of the Tide Water Power Company as 
may qualify under said Pension Plan; and it further appearing that 
no deposits or payments are made under said Plan by employees, the 
entire cost of the Pension Plan being borne by the employer. 

The Commission, having studied the Pension Plan and the Pension 
Trust Agreement, is of the opinion and finds as a fact that the Pension 
Plan therein and thereby set up is fair and reasonable and adequate 
for the purposes of the Tide Water Power Company, and that it will 
not unreasonably in any manner deplete the earnings or assets of 
the Tide Water Power Company, but will, on the contrary, by the 
improvement of working conditions and better relations between em- 
ployer an demployees, tend strongly to be of much benefit to the 
Power Company and aid and assist it in the discharge of its public 
service and will require only such expenditure as will be compatible 
with public interest and necessary and appropriate for or consistent 
with the proper performance by the utility of its service to the public 
as such utility and will not impair its ability to perform that service 
and is reasonably necessary and appropriate therefor. 



Decisions and Adjustments of Complaints 61 

It is, therefore, ordered and adjudged that the Pension Plan of 
the Tide Water Power Company, as set forth in the Pension Plan for 
Employees of the Tide Water Power Company, and the Pension Trust 
Agreement, dated December 14, 1937, in which Employees Welfare 
Association, Inc. is party of the first part and Joseph A. Shields, Trus- 
tee, is party of the second part, copies of both of which are on file in 
this office, be and the same are in all respects approved, and the Tide 
Water Power Company is hereby authorized to set up said Pension 
Plan and operate the same in accordance with the provisions of said 
instruments. 

This 2nd day of March, 1938. Stanley Winborne, 

Attest: Utilities Commissioner. 

R. O. Self, Clerk. 

Docket No. 1234. 

VIRGINIA ELECTRIC AND POWER COMPANY ON APPLICATION 
FOR AUTHORITY TO PAY A DIVIDEND OF 15c PER SHARE 
ON ITS COMMON STOCK ON SEPTEMBER 15, 1937. 

Order 

This day came Virginia Electric and Power Company, hereinafter 
sometimes called the company, and presented its application signed 
under date of July 21, 1937, by J. G. Holtzclaw, President, under the 
provisions of Chapter 307 of the Acts of Assembly of 1933 (Sections 
1112 (1) — (36), inclusive, Michie's Code of 1935), asking for authority 
to pay a dividend at the rate of fifteen cents (15c) per share on the 
common stock of said Company outstanding and on such additional 
common stock as may be issued under the provisions of the Merger 
Agreement between said Company and the City Gas Company of Nor- 
folk, dated June 9, 1930, and there were presented with said applica- 
tion and referred to and identified therein exhibits "A" and "B" and 
upon motion of the said Company, by Hunton, Williams, Anderson, 
Gay & Moore, its counsel, through T. Justin Moore, of Counsel: 

It is ordered that said application and exhibits "A" and "B" be, 
and they hereby are, filed, that the matter be and hereby is, docketed 
and set for immediate consideration by the Commission, upon the 
application, exhibits, and representations of Counsel, without formal 
hearing; 

Thereupon, this matter came on this day to be heard and con- 
sidered, upon the said application, exhibits, and representations of 
counsel, and was argued by counsel; 

Upon consideration whereof, the Utilities Commission finds that 
the said Company is a corporation owning and lawfully operating in 
this State equipment or facilities for producing, generating, transmit- 
ting, delivering or furnishing electricity; and it appearing from said 
application, exhibits and representations, and from the investigation 
and consideration by the Commission, that the Company's capital 
represented by its 2,788,445 shares without par value of common stock 
(including stock outstanding and such additional common stock as 
may be issued in exchange for scrip or as may be issued under the 



62 N. C. Utilities Commission 

provisions of the Merger Agreement between the Company and City 
Gas Company of Norfolk, dated June 9, 1930) as shown by its books, 
amounts to the sum of $15,137,260; that the current net earnings of the 
Company (after setting aside suitable appropriations for Retirement 
Reserve, as authorized by the Board of Directors, and the amount 
required for the payment of preferred dividends) available for com- 
mon dividends and surplus for the twelve months ending June 30, 
1937, amounted to the sum of $2,141,947.68; that the current net earn- 
ings for the last nine months period beginning October 1, 1936 and 
ending June 30, 1937 available for common dividend and surplus, after 
provision for Retirement Reserve and Preferred Dividends amounted 
to $1,673,240.72; that the dividend proposed to be paid by the Company 
at the rate of 15c per share on the comnion stock outstanding and on 
such additional common stock as may be issued under the provisions 
of the Merger Agreement between the Company and the City Gas 
Company of Norfolk, dated June 9, 1930, consisting in the aggregate 
of 2,788,445 shares, will not exceed the sum of $418,266.75, which 
together with the two (2) dividends totaling 30c per share paid during 
1937, is substantially less than the net earnings of the Company avail- 
able for common dividends currently earned during the last nine 
months ending June 30, 1937; and that the payment of said dividend 
will in nowise impair the Company's necessary working capital or 
interfere with its ability to continue to furnish an adequate and suffi- 
cient service to its customers, and is in no way inconsistent with the 
public interest; and the Commission being of opinion that the prayer 
of said application should be granted, and that the payment of said 
dividend should be approved and authorized: 

It is therefore adjudged, ordered and decreed, that Virginia 
Electric and Power Company be, and it hereby is, authorized, empow- 
ered and permitted to pay a dividend of 15c per share on the Com- 
pany's common stock represented by 2,788,445 shares without par 
value, (including common stock outstanding and such additional com- 
mon stock as may be issued under the provisions of the Merger Agree- 
ment between the Company and the City Gas Company of Norfolk, 
dated June 9, 1930), payable on or about September 15, 1937, amount- 
ing to a sum not to exceed $418,266.75, provided, however, that the 
payment to be made hereunder shall not exceed the actual current 
net earnings available for such purpose. 

Provided, however, that the Clerk of this Commission shall fur- 
nish one attested copy of the application herein, and three attested 
copies of this order without charge therefor, upon being furnished with 
the necessary copies by said Company; and 

Provided further, that this proceeding be and the same hereby 
is, stricken from the docket of the Commission, no further action in the 
premises being required. 

This the 28th day of July, 1937. 

Stanley Winborne, 

By order of the Commissioner: Utilities Commissioner. 

R. O. Self, Chief Clerk. 

Docket No. 1053. 



Decisions and Adjustments of Complaints 63 

VIRGINIA ELECTRIC AND POWER COMPANY ON APPLICATION 
FOR ATHORITY TO PAY A DIVIDEND OF 25 CENTS PER SHARE 
ON ITS COMMON STOCK ON DECEMBER 15, 1937. 

Order 

This day came Virginia Electric and Power Company, hereinafter 
sometimes called the Company, and presented its application signed 
under date of November ...., 1937, by J. G. Holtzclaw, President, un- 
der the provisions of Chapter 307 of the Acts of Assembly of 1933 
(Sections 1112 (l)-(36), inclusive, Michie's Code of 1935), asking 
for authority to pay a dividend at the rate of twenty-five cents (25c) 
per share on the common stock of said Company outstanding and on 
such additional common stock as may be issued under the provisions 
of the Merger Agreement between said Company and the City Gas 
Company of Norfolk, dated June 9, 1930, and there were presented 
with said application and referred to and identified therein exhibits 
"A" and "B"; and upon motion of the said Company, by Hunton, 
Williams, Anderson, Gay & Moore, its counsel, through T. Justin 
Moore, of Counsel; 

It is ordered, that said application and exhibits 'A" and "B" be, 
and they hereby are, filed, that the matter be and hereby is, docketed 
and set for immediate consideration by the Commission, upon the 
application, exhibits and representations of Counsel, without formal 
hearing; 

Thereupon, this matter came on this day to be heard and con- 
sidered, upon the said application, exhibits and representations of 
counsel, and was argued by counsel; 

Upon consideration whereof, the Utilities Commission finds that 
the said Company is a corporation owning and lawfully operating 
in this State equipment or facilities for producing, generating, trans- 
mitting, delivering or furnishing electricity; and it appearing from 
said application, exhibits and representations, and from the investi- 
gation and consideration by the Commission, that the Company's 
capital represented by its 2,788,445 shares without par value of com- 
mon stock (including stock outstanding and such additional common 
stock as may be issued in exchange for scrip or as may be issued un- 
der the provisions of the Merger Agreement between the Company 
and City Gas Company of Norfolk, dated June 9, 1930) as shown by 
its books, amounts to the sum of $15,137,260.00; that the current net 
earning of the Company (after setting aside suitable appropriations 
for Retirement Reserve, as authorized by the Board of Directors, and 
the amount required for the payment of preferred dividends) avail- 
able for common dividends and surplus for the twelve months end- 
ing September 30, 1937, amounted to the sum of $2,212,842.83; that 
the current net earnings for the last nine months period beginning 
January 1, 1937 and ending September 30, 1937 available for com- 
mon dividend and surplus, after provision for Retirement Reserve and 
Preferred Dividends amounted to $1,629,081.20; that the dividend pro- 
posed to be paid by the Company at the rate of 25c per share on the 
common stock outstanding and on such additional common stock as 



64 N. C. Utilities Commission 

may be issued under the provisions of the Merger Agreement between 
the Company and the City Gas Company of Norfolk, dated June 9, 
1930, consisting in the aggregate of 2,788,445 shares, will not exceed 
the sum of $697,111.25, which together with the three (3) dividends 
totalling 45c per share paid during 1937, is substantially less than the 
net earnings of the Company available for common dividends cur- 
rently earned during the last twelve months ending September 30, 
1937; and that the payment of said dividend will in nowise impair 
the Company's necessary working capital or interfere with its ability 
to continue to furnish an adequate and sufficent service to its cus- 
tomers, and is in no way inconsistent with the public interest; and the 
Commission being of the opinion that the prayer of said application 
should be granted, and the payment of said dividend should be ap- 
proved and authorized: 

It is further adjudged, ordered and decreed, that Virginia Elec- 
tric and Power Company be, and it hereby is, authorized empowered 
and permitted to pay a dividend of 25c per share on the Company's 
common stock represented by 2,788,445 shares without par value, 
(including common stock outstanding and such additional common 
stock as may be issued under the provisions of the Merger Agreement 
between the Company and the City Gas Company of Norfolk, dated 
June 9, 1930), payable on or about December 15, 1937, amounting 
to a sum not to exceed $697,111.25, provided, however, that the pay- 
ment to be made hereunder shall not exceed the actual current net 
earnings available for such purpose. 

Provided, however, that the Clerk of this Commission shall furnish 
one attested copy of the application herein, and three attested copies 
of this order without charge therefor, upon being furnished with the 
necessary copies by said Company; and 

Provided further, that this proceeding be and the same hereby 
is stricken from the docket of the Commission, no further action in 
the premises being required. 

This the 12th day of November, 1937. 

Stanley Winborne, 

Utilities Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1139. 

VIRGINIA ELECTRIC AND POWER COMPANY ON APPLICATION 
FOR AUTHORITY TO PAY A DIVIDEND OF 15 CENTS PER 
SHARE ON ITS COMMON STOCK ON SEPTEMBER 15, 1938. 

Order 
This day came Virginia Electric and Power Company, hereinafter 
sometimes called the Company, and presented its application signed 
under date of July 18, 1938, by J. G. Holtzclaw, President, under the 
provisions of Chapter 307 of the Acts of Assembly of 1933 (Sections 
1112 (l)-(36), inclusive, Michie's Code of 1935), asking for authority 



Decisions and Adjustments of Complaints 65 

to pay a dividend at the rate of fifteen cents (15c) per share on the 
common stock of said Company outstanding and on such additional 
common stock as may be issued under the provisions of the Merger 
Agreement between said Company and the City Gas Company of Nor- 
folk, dated June 9, 1930, and there were presented with said appli- 
cation and referred to and identified therein exhibits 'A" and "B"; and 
upon motion of the said Company, by Hunton, Williams, Anderson, 
Gay & Moore, its counsel, through T. Justin Moore, of Counsel; 

It is ordered, that said application and exhibits 'A" and "B" be, 
and they hereby are, filed, that the matter be and hereby is, docketed 
and set for immediate consideration by the Commission, upon the 
application, exhibits and representations of Counsel, without formal 
hearing; 

Thereupon, this matter came on this day to be heard and con- 
sidered, upon the said application, exhibits and representations of 
counsel, and was argued by counsel; 

Upon consideration whereof, the Utilities Commission finds that 
the said Company is a corporation owning and lawfully operating in 
this State equipment or facilities for producing, generating, trans- 
mitting, delivering or furnishing electricity; and it appearing from 
said application, exhibits and representations, and from the investi- 
gation and consideration by the Commission, that the Company's cap- 
ital represented by its 2,788,445 shares without par value of common 
stock (including stock outstanding and such additional common stock 
as may be issued in exchange for scrip or as may be issued under the 
provisions of the Merger Agreement between the Company and City 
Gas Company of Norfolk, dated June 9, 1930) as shown by its books, 
amounts to the sum of $15,137,260; that the current net earnings of 
the Company (after setting aside suitable appropriations for Retire- 
ment Reserve, as authorized by the Board of Directors, and the amount 
required for the payment of preferred dividends) available for com- 
mon dividends and surplus for the twelve months ending June 30, 
1938, amounted to the sum of $2,172,436.19; that the current net earn- 
ings for the last nine months period beginning October 1, 1937, and 
ending June 30, 1938, available for common dividend and surplus, 
after provision for Retirement Reserve and Preferred Dividends 
amounted to $1,632,834.08; that the dividend proposed to be paid by 
the Company at the rate of 15c per share on the common stock 
outstanding and on such additional common stock as may be issued 
under the provisions of the Merger Agreement between the Com- 
pany and the City Gas Company of Norfolk, dated June 9, 1930, con- 
sisting in the aggregate of 2,788,445 shares, will not exceed the sum 
of $418,266.75, which together with the two (2) dividends totaling 
30c per share paid during 1938, is substantially less than the net 
earnings of the Company available for common dividends currently 
earned during the last nine months ending June 30, 1938; and that 
the payment of said dividend will in nowise impair the Company's 
necessary working capital or interfere with its ability to continue to 
furnish an adequate and sufficient service to its customers, and it is 



66 N. C. Utilities Commission 

in no way inconsistent with the public interest; and the Commis- 
sion being of opinion that the prayer of said application should be 
granted, and that the payment of said dividend should be approved 
and authorized: 

It is therefore adjudged, ordered and decreed, that Virginia 
Electric and Power Company be, and it hereby is, authorized, em- 
powered and permitted to pay a dividend of 15c per share on the 
Company's common stock represented by 2,788,445 shares without 
par value, (including common stock outstanding and such additional 
common stock as may be issued under the provisions of the Merger 
Agreement between the Company and the City Gas Company of Nor- 
folk, dated June 9, 1930, payable on or about September 15, 1938, 
amounting to a sum not to exceed $418,266.75, provided, however, that 
the payment to be made hereunder shall not exceed the actual current 
net earnings available for such purpose. 

Provided, however, that the Clerk of this Commission shall furnish 
one attested copy of the application herein, and three attested copies 
of this order without charge therefor, upon being furnished with the 
necessary copies by said Company; and 

Provided further, that this proceeding be and the same hereby 
is stricken from the docket of the Commission, no further action in the 
premises being required. 

This the 20th day of July, 1938. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 

By order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1360. 

VIRGINIA ELECTRIC AND POWER COMPANY, ON APPLICATION 
FOR AUTHORITY TO ISSUE AND SELL BONDS AND NOTES. 

Order 

This day came Virginia Electric and Power Company (hereinafter 
sometimes referred to as the "Company"), and presented its applica- 
tion filed under date of September 15, 1938, by J. G. Holtzclaw, Presi- 
dent, under the provisions of Chapter 307 of the Acts of Assembly 
1933 (Sections 1112 (l)-(30), inclusive, Michie's Code of North Caro- 
lina of 1935) asking for authority to issue and sell $37,500,000 aggre- 
gate principal amount Of the Company's First and Refunding Mort- 
gage Bonds, Series B 31/2 % (hereinafter sometimes referred to as the 
"Bonds"), and to issue $4,000,00 aggregate principal amount of notes 
to banks evidencing bank loans in the aggregate principal amount of 
said notes to be dated (currently with such advances) from October 
10, 1938 to October 1, 1939, and maturing serially from May 1, 1940 
to November 1, 1946, all of such notes to bear interest at the rate of 
3% per annum; and to apply the proceeds from said Bonds and notes 
to various corporate purposes; and there were presented with said 
application and referred to and identified therein exhibits marked A to 



Decisions and Adjustments of Complaints 67 

G, inclusive; and upon the motion of Hunton, Williams, Anderson, Gay 
and Moore, its counsel, through T. Justin Moore and George D. Gibson, 
of counsel: 

It is ordered, that said application and exhibits be, and they here- 
by are filed (said application and exhibits having been received by 
this Commission on September 16, 1938, and informally considered 
by the Commission prior to the official filing thereof by this order), 
and that this matter be, and it hereby is, docketed and set for imme- 
diate hearing by the Commission, upon said application and exhibits, 
and upon such statements and representations as the Company, 
through its representatives, may desire to submit for the consideration 
of the Commission; and 

Thereupon, this matter came on this day to be heard and con- 
sidered upon said application, exhibits, statements and representations, 
and was argued by counsel; 

Upon consideration v^hereof, the Utilities Commission finds that 
the said Company is a corporation owning or operating in this State 
equipment or facilities for producing, generating, transmitting, deliv- 
ering or furnishing electricity; and that as such corporation the Com- 
pany is subject to regulation by this Commission as to rates, service 
and security issues; that the proposed issuance and sale of $37,500,000 
principal aggregate amount of the Company's First and Refunding 
Mortgage Bonds, Series B 31/2 %, due September 1, 1968, and the issu- 
ance to the banks referred to in the aforesaid application of $4,000,000 
principal aggregate amount of serial notes evidencing bank loans in 
the aggregate principal amount of said notes, to be dated from October 
10, 1938 to October 1, 1939, and maturing serially from May 1, 1940 
to November 1, 1946, all of said notes to bear interest at the rate of 
3% per annum, (the said Bonds to be secured by an original Indenture 
of Mortgage dated November 1, 1935 between the Company and 
The Chase National Bank of the City of New York, Trustee, filed with 
and approved by this Commission in Case No. 536, as supplemented 
and modified by the Company's First Supplemental Indenture to the 
aforesaid Trustee, dated September 1, 1938, draft of which is filed as 
Exhibit F in this proceeding) are for lawful corporate purposes of the 
Company, to-wit: the discharge or lawful refunding of its outstanding 
obligations and the extension and improvement of its facilities, are 
compatible with the public interest, are necessary or appropriate for 
or consistent with the proper performance by the Company of its 
service to the public as a public utility and will not impair its ability 
to perform that service, and are reasonably necessary for such pur- 
poses (said purposes being more particularly specified hereinbelow) ; 
in consideration whereof, the Commission is of the opinion that the 
prayers of said application should be granted and that the proposed 
transactions, including the issuance and/or sale of securities as pro- 
posed, should be approved and authorized: 

It is therefore adjudged, ordered and decreed: that A/'irginia 
Electric and Power Company be, and it hereby is, authorized, em- 
powered and permitted to: 



68 N. C. Utilities Commission 

(1) Issue $37,500,000 aggregate principal amount of bonds under 
its Indenture of Mortgage dated November 1, 1935, between the Com- 
pany and The Chase National Bank of the City of New York, Trustee, 
as supplemented and modified by its First Supplemental Indenture to 
said The Chase National Bank of the City of New York, Trustee, 
dated September 1, 1938, filed as Exhibit F in this proceeding; said 
Bonds to be known as the Company's First and Refunding Mortgage 
Bonds, Series B 31/2%, to be dated September 1, 1938, to be due 
September 1, 1968, and to bear interest at the rate of 3V2 % per annum 
from September 1, 1938 until paid, and to have the characteristics 
more fully defined in said Indenture of Mortgage dated November 1, 
1935, as supplemented and modified by said First Supplemental In- 
denture dated September 1, 1938, including provisions for the sink- 
ing fund and for the redemption of said Bonds at the option of said 
Company. 

(2) Sell the said Bonds, or any part thereof, to an underwriting 
group (including Stone & Webster and Blodget, Incorporated, the 
First Boston Corporation, Brown, Harriman & Company, Incorporated, 
or any of them), at a price to said Company of not less than par and 
accrued interest; provided, however, that the commission to said un- 
derwriters shall not exceed 2 % of the principal amount of said Bonds. 

(3) Execute and deliver the Company's First Supplemental In- 
denture to The Chase National Bank of the City of New York, Trustee, 
to be dated as of September 1, 1938, supplementing and modifying 
the Company's original Indenture of Mortgage dated November 1, 
1935, to the said The Chase National Bank of the City of New York, 
Trustee, conveying all the properties and franchises of said Company 
(or any part thereof not less than all the principal physical properties 
and franchises used and useful to it in the conduct of its electric light 
and power, gas, bus and street railway operations) whether now 
owned or hereafter acquired to secure the aforesaid First and Re- 
funding Mortgage Bonds, Series B 31/2 %, of said Company. 

(4) Issue $4,000,000 aggregate principal amount of serial notes 
to First National Bank of Boston, First and Merchants National Bank 
of Richmond, State-Planters Bank and Trust Company, and The 
Central National Bank of Richmond, evidencing bank loans in equal 
aggregate amount of the aggregate face amount of said notes as prayed 
in said application, said notes to be dated (currently with such ad- 
vances) from October 10, 1938 to October 1, 1939, and maturing 
serially from May 1, 1940 to November 1, 1946, all of such notes to 
bear interest at the rate of 3% per annum; said notes to be in the 
form shown in Exhibit A attached to the Company's application in 
this proceeding and to be issued pursuant to the proposed forms of 
agreements between the Company and the aforesaid banks filed with 
the Company's application in this proceeding and marked Exhibits 
B, C, D, and E, respectively. 

(5) Use and apply the net proceeds from the sale of said Bonds, 
after deduction of expenses, and the net proceeds of said bank loans 
(supplemented by $1,500,000.00 contribution by Engineers Public Serv- 



Decisions and Adjustments of Complaints 69 

ice Company to the capital of the Company in respect of the Company's 
Common Stock, as proposed in the Company's Registration Statement, 
copy of which is filed as Exhibit G with the Company's application in 
these proceedings, and other general funds of the Company to the 
extent necessary) for and to the following purposes only: 

(a) Payment of the actual and reasonable expenses 
of the Company in connection with the sale of 
said Bonds and the effectuation of the refunding 
plan herein authorized. 

(b) The redemption of $37,488,000 principal amount 
of First and Refunding Mortgage Bonds, Series 
A 4%, of the Company due November 1, 1955, 

being all of said bonds outstanding, at 105 $39,362,400 

(c) The payment of $800,000 principal amount 
of notes payable to banks (the proceeds of the 
loans made in December, 1937, were used to 
reimburse the Treasury for construction expen- 
ditures) 800,000 

(d) Capital additions and improvements increasing 
the Company's electric generating capacity in its 
Twelfth Street Power Station at Richmond, Vir- 
ginia (which construction is expected to be com- 
pleted in the Spring of 1940), estimated to cost 
approximately 3,350,000 

Provided, however, that in the event any of the Series A 4% 
Bonds to be redeemed as aforesaid be held by any affiliate of the ap- 
plicant when said Bonds are called for redemption or redeemed, all 
such Bonds so held by said affiliate shall be redeemed at the cost of 
such Bonds to such affiliate or at the call price thereof, whichever is 
the lesser. 

(6) Amortize the discount and expense remaining unamortized 
at the date of the retirement of the Company's First and Refunding 
Mortgage Bonds, Series A 4%, due November 1, 1955, over the bal- 
ance of the life of said Bonds as if they were not retired, and to 
amortize the premium of $1,874,400 to be paid in connection with the 
redemption of said Series A 4% Bonds ratably over the life of the 
new First and Refunding Mortgage Bonds, Series B 31/2%, due Sep- 
tember 1, 1968; provided, however, the Company, at its option, may 
amortize said remaining discount and expense pertaining to said 
Series A 4% Bonds over the balance of the life of said Bonds as if 
they were not retired and also may amortize the premium to be paid 
in connection with the redemption of said Series A 4% Bonds over 
the same period. 

Provided, however, that nothing in this order contained shall be 
construed to authorize the said Company to issue any notes or other 
evidences of indebtedness (other than the said Bonds and notes) that 
may be payable at periods of more than two years from the date 
thereof, unless authority therefor shall first have been obtained from 
this Commission; and 

Further provided that nothing in this order contained shall relieve 
the said Company from its duty, if any, to effectuate registration of 



70 N. C. Utilities Commission 

said Bonds with the Federal Securities and Exchange Commission 
prior to the issuance and sale thereof; and 

Further provided that nothing in this order contained shall relieve 
the said Company from its duty to comply v^ith the provision of 
Section 167 of the Constitution and Section 3788 of the Code of 
Virginia, relating to filing v^ith the State Corporation Commission of 
Virginia statements of proposed issues of bonds, if otherv^ise appli- 
cable; and 

Further provided that nothing in this order contained shall be 
construed to obligate the State of North Carolina to pay or guarantee 
in any manner whatsoever any bonds authorized hereby, or be con- 
strued or represented as involving an expression of opinion on the 
part of this Commission as to the value of any such securities; and 

Further provided that promptly after the registration statement 
to be filed by the said Company with the Federal Securities and Ex- 
change Commission covering the issuance and sale of the said Bonds 
hereinbefore authorized shall have become effective, a copy thereof 
shall be filed as a supplemental exhibit in this proceeding, and a copy 
of each subsequent amendment, if any, of such registration statement 
shall be filed as a supplemental exhibit in this proceeding; and 

Further provided that promptly after the execution of the First 
Supplemental Indenture dated September 1, 1938, hereinabove author- 
ized, said Company shall file a copy of the executed form thereof as 
a supplemental exhibit in this proceeding; and 

Further provided that promptly after the execution of any con- 
tract for the sale of the said Series B 31/2 % Bonds to any underwrit- 
ing group as hereinabove authorized, the Company shall file a copy 
of the executed form thereof as a supplemental exhibit in this pro- 
ceeding; and 

Further provided that promptly after the execution of the agree- 
ments with the banks and the notes to be issued to said banks evidenc- 
ing bank loans as herein authorized, the Company shall file a copy of 
all such executed agreements and notes as supplemental exhibits in 
this proceeding; and 

Further provided that on or before January 16, 1939, the Com- 
pany shall file wth this Commission a report showing the results of 
the transactions had pursuant to this order; and 

Further provided that nothing in this order contained shall be 
construed as adjudging, or expressing an opinion on, the status under 
the laws of North Carolina of any foreign corporation that may be- 
come the trustee under the aforesaid Indenture of Mortgage, dated 
November 1, 1935, as supplemented and modified by said First Sup- 
plemental Indenture dated September 1, 1938, hereinabove authorized, 
or as exempting such corporation from proper compliance with any 
requirements of any present or future law of North Carolina; and 

Further provided that nothing in this order contained shall be 
construed as authorizing the issuance of any bonds except the Com- 
pany's First and Refunding Mortgage Bonds, Series B 3^/2%, in a 



Decisions and Adjustments of Complaints 71 

principal amount not exceeding $37,500,000 as authorized in para- 
graph (1) hereof. 

Further provided that the Clerk of this Commission shall furnish 
to the Company two attested copies of the application herein and six 
attested copies of this order without charge therefor, upon being fur- 
nished with the necessary copies by said Company; and 

Further provided that this proceeding be, and the same hereby is, 
continued on the docket of the Commission without day for the pur- 
pose of receiving the supplemental exhibits and the reports from the 
said Company herein required, and for any other action that may be 
found or deemed necessary or advisable. 

This the 21st day of September, 1938. 

Stanley Winborne, 

Utilities Commissioner. 

By order of the Commission: 
R. O. Self, Chief Clerk. 
Docket No. 1413. 

PETITION CHARLES B. ZEIGLER FOR CERTIFICATE OF CON- 
VENIENCE AND NECESSITY TO ACQUIRE CONTROL BY PUR- 
CHASE OF THE ENTIRE STOCK OF CERTAIN GAS PROPERTIES 
AND ISSUE BONDS THEREON. 

Order 

This cause arises upon the application of Charles B. Zeigler, 281 
Barr Avenue, Teaneck, New Jersey, an individual, for a Certificate of 
Convenience and Necessity to purchase the entire stock and assume 
liabilities of the Concord & Kannapolis Gas Company and the Gastonia 
and Suburban Gas Company. 

It appears from the petition presented by the applicant that he will 
finance these companies in a sufficient manner to guarantee service 
and will otherwise put said properties in first-class condition to give 
standard gas service. It is further evidenced by the petition that a 
reduction is being made in the capital stock of each company, and also 
an evaluation of the plant accounts, which will permit more equitable 
rates and thereby induce greater consumption of gas in these com- 
munities. From the foregoing it appears that to grant same will en- 
hance the public convenience and necessity of each community af- 
fected. 

The petitioner further requests authority to issue mortgage bonds 
on the properties in question; $70,000.00 on the Concord and Kan- 
napolis Gas Company, and $97,000.00 on the Gastonia and Suburban 
Gas Company. These bonds are to be fifteen year, 5% first mortgages, 
and this request is granted in consideration of the reduction in the 
capital stock in the sum of $140,000.00. Therefore, it appears that to 
grant the petition to issue the mortgage bonds is also in the public 
interest when considered in connection with the application generally. 
Therefore, it is 



72 N. C. Utilities Commission 

Ordered that the petition be granted and that a copy of the appli- 
cation attached to this order is hereby made a part of said order with 
this reference. 

This June 18, 1937. 

Stanley Winborne, 

Commissioner. 
By order of the Commissioner: 

R. O. Self, Clerk. 
Docket No. 1037. 

Appalachian State Teachers College to the Commission. Rates on 
residence appliances, refrigeration and cooking filed and approved. 
Docket No. 999. 

Carolina Mountain Power Corporation. Esmeralda Inn complains 
of rates for commercial lighting. Dismissed. Docket No. 1401. 

Carolina Power and Light Company to the Commission. Following 
rates filed and approved: 

Charitable, Education and Religious Institutions. Docket No. 1338. 
Commercial Lighting. Schedule C-3. Docket No. 917. 

Commercial Service. Schedule P-12. Docket No. 917. 

Commercial Service. Schedule P-13. Docket No. 915. 

Cotton Oil Mill Service (Seasonable). Schedule P-14. 

Docket No. 1091. 
Flour Mills. Schedule P-17. 

Grist Mills. Schedule P-16. Docket No. 1230. 

Commercial Heating and Cooking (Miscellaneous). 

Schedule CC-1. 
Commercial Heating and Cooking (Large). 

Schedule CC-2. Docket No. 1124. 

Miscellaneous Power. Schedules P-1 and P-11. 

Docket No. 917. 
Pumping Service. Schedule P-23. 

Pumping Service (Large). Schedule P-24. Docket No. 1361. 

Redistribution and Resale. Schedule P-8. Docket No. 917. 

Redistribution and Resale. Schedules P-20 and 

P-21. Docket No. 1230. 

Residential Rate Service Classification. 

Schedule R-1 and Rider No. 7. 
Residential Service. Schedule R-1. Docket No. 917. 

Rural Extensions. Docket No. 1091. 

Street Lighting (general). Schedule G. S. 3. 
Street Lighting (incandescent) overhead system. 

Schedule G. S. 4. Docket No. 1091. 

Street Lighting (incandescent). Schedule G.S. 4. Docket No. 1124. 
Textile Mills. Schedule P-7. Docket No. 917. 

Carolina Power and Light Company to the Commission. Applica- 
tion for authority to withdraw and cancel Schedule P-1 9, Power for 
Large Pumping Plants — secondary. Granted. Docket No. 1394. 

Carolina Power and Light Company. Request by the Commission 
for rate for electric service to cotton seed oil mills for use in crushing 
peanuts. Rates filed. Docket No. 1307. 

Carolina Power and Light Company. Complaint by W. C. Averitt 
of voltage of line to be constructed from Vander to Cedar Creek. Dis- 
missed. Docket No. 933. 



Decisions and Adjustments of Complaints 73 

Carolina Power and Light Company. Complaint by Mrs. Roy Brad- 
ford of excessive charge. Adjusted. Docket No. 1350. 

Carolina Power and Light Company. Application by Mrs. Ada 
Chappell for rural line extension. Granted. Docket No. 960. 

Carolina Power and Light Company. Petition by residents of 71st 
Township of Cumberland County to require defendant to withhold 
sale of lines in said territory pending agreement of City of Fayette- 
ville to charge same rates as charged at that time. Dismissed. Docket 
No. 1016. 

Carolina Power and Light Company. Complaint by M. V. Gibson of 
rates. Dismissed. Docket No. 1063. 

Carolina Power and Light Company. Complaint by H. L. Mason and 
other residents of Wake Forest of excessive minimum rate on rural 
lines. Adjusted. Docket No. 1032. 

Carolina Power and Light Company. Mrs. L. B. Page applies for 
electric service. Dismissed. Docket No. 1076. 

Carolina Power and Light Company. Petition by S. S. Pate for 
electric service. Dismissed. Docket No. 1014. 

Carolina Power and Light Company. Mrs. Alice M. Reddich and 
Mrs. Mary H. Hester apply for electric service in residence of Mrs. 
Reddish. Adjusted. Docket No. 1347. 

Carolina Power and Light Company. Application by Mrs. F. A. 
Reeder for electric extension from Waynesville out to farm on the 
Pigeon Road. Adjusted. Docket No. 1141. 

Carolina Power and Light Company. Complaint by Messrs. Smith, 
Gunter and Gardner of rate for extension running south of Fuquay 
Springs. Adjusted. Docket No. 980. 

Carolina Power and Light Company. Application by J. R. White, 
Louisburg, for service. Adjusted. Docket No. 1029. 

Carolina Power and Light. Robt. T. Wilson complains of difference 
in minimum charge for various localities. Adjusted. Docket No. 1442. 

Casolina Utilities, Inc. Complaint by citizens of Ruffin and Provi- 
dence School Community of rates and service. Adjusted. Docket No. 
985. 

Casolina Utilities, Inc. Citizens of Yanceyville complain of conces- 
sions to old electric light customers who paid for construction of lines 
during previous ownership. Dismissed. Docket No. 420. 

Central Electric and Telephone Company to the Commission. Rates 
for Albemarle, Misenheimer and Richfield. Approved. Docket No. 951. 

Central Electric and Telephone Company. Complaint by A. B. Mc- 
Crosky of electric service. Adjusted. Docket No. 1326. 

Cold Water Light and Power Company. Complaint of rates by Citi- 
zens of Cabarrus County. Adjusted. Docket No. 970. 

Crisp Power Company to the Commission. Application for certifi- 
cate of convenience and necessity to construct rural electric lines in 
the vicinity of Crisp, said lines leading out to Old Sparta and to Gov- 
ernor Carr place and road to Sharp Point. Upon request of petitioner, 



74 N. C. Utilities Commission 

case left on open file for future consideration. Later on closed for lack 
of prosecution. Docket No. 1090. 

Duke Power Company to the Commission. Following rates filed and 
approved : 

Commercial electric lighting service. Schedule 1-C. 

Ice plant and air-conditioning power service. Schedule 2-D, with 

Rider. 
Municipal resale service. 
Power service. Schedule 2-C. 
Primary power to consumers for resale and redistribution. 

Schedule No. 10. 
Primary power for textile and grain mills. Schedule No. 1-A. 
Residential electric service. Schedule No. 1-R. 
Residential electric service (seasonal). Docket No. 1229. 

Rural resale service. Schedule 11-A. Dockets Nos. 1023 and 1151. 
Street lighting service. Docket No. 1049. 

Water heating service. Schedule No. 1-W. Docket No. 1229. 

Duke Power Company, Carolina Power and Light Company and 
Casolina Utilities, Inc., to the Commission. Contract for purchase of 
certain rural lines of Casolina Utilities, Inc., in Caswell County. Docket 
No. 1086. 

Duke Power Company. Application by Ferry Store Section for pro- 
posed rural electric line. Dismissed. Docket No. 692. 

Duke Power Company. Application by Mrs. Andie Flowe for ex- 
tension of power service to home. Dismissed. Docket No. 1443. 

Duke Power Company. Complaint of service by Glencoe Mills. Dis- 
missed. Docket No. 1215. 

Duke Power Company. Application by John E. Glover for electric 
service. Granted. Docket No. 1415. 

Duke Power Company. Complaint by citizens of Greensboro of 
crowded condition of buses from Jefferson Square to Church Street 
Extension. Adjusted. Docket No. 1199. 

Duke Power Company. Petition by J. J. Misenheimer and other 
citizens of Charlotte for extension of bus operation from Austin Street 
to Beatties Ford Road. Dismissed. Docket No. 1289. 

Duke Power Company. Complaint by Meyer's Major Appliance 
Department of service in Pomona Section. Adjusted. Docket No. 967. 

Duke Power Company. Application by Charles F. Morrow for rate 
for household heating comparable to rate for electric water heaters. 
Rates filed to cover application. Docket No. 870. 

Duke Power Company. Complaint by North State Milling Company, 
Inc., of power rates. Dismissed. Docket No. 1251. 

Duke Power Company. Complaint by E. B. Parks of electric service 
and bills rendered, requesting analysis of account for some time back. 
Dismissed. Docket No. 964. 

Duke Power Company. Application by C. E. Rogers for power line 
outside of town of Taylorsville. Adjusted. Docket No. 1372. 

Duke Power Company. Application by Mary Sharpe of Burlington 
for installation of electric service. Dismissed. Docket No. 1222. 



Decisions and Adjustments of Complaints 75 

Duke Power Company. Application for Howard Smith for electric 
line to home. Dismissed. Docket No. 1015. 

Duke Power Company. Complaint by Mrs. William R. Smith of 
failure to receive power service. Dismissed. Docket No. 1337. 

Duke Power Company. Complaint by Thomasville Chair Company 
of wholesale electric power service rate. Dismissed. Docket No. 972. 

Duke Power Company. Complaint of power rates by Valdese Manu- 
facturing Company. Dismissed. Docket No. 1325. 

Duke Power Company. Complaint by Wallace Building Company 
with reference to billing for light and power service. Adjusted. Docket 
No. 1184. 

Duke Power Company. Complaint by N. W. Walker of service in 
relighting baseball park and furnishing transformers. Adjusted. Docket 
No. 963. 

Hominy Power and Light Company. Complaint by Lucille Mcln- 
turff of service on account of low voltage. Adjusted. Docket No. 1421. 

Hominy Power and Light Company to the Commission. Following 
rates filed: 

Commercial Lighting — immediate rate. 
Commercial Lighting — inducement rate. ^ . 

Residential service — immediate rate. 
Residential service — inducement rate. 
Small miscellaneous power. 
Large miscellaneous power. 
Docket No. 912. 

Nantahala Power and Light Company to the Commission. Rates for 
power and users of large quantities of electric energy. Schedule D-Y. 
Approved. Docket No. 1297. 

Nantahala Power and Light Company. Rates for Town of Andrews 
approved. Docket No. 930. 

National Utilities Company of North Carolina to the Commission. 
Domestic Combination Appliance Service rates filed and approved. 
Docket No. 987. 

New River Light and Power Company to the Commission. Rates 
for light, refrigeration, cooking and power in Boone. Docket No. 578. 

New River Light and Power Company to the Commission. Rates 
for Boone filed and approved. Docket No. 1216. 

Northwest Carolina Utilities, Inc. to the Commission. The following 
rates filed and approved: 

Large Miscellaneous Power Rates. Docket No. 952. 

Small Retail Power. Schedule No. 3. Docket No. 1012. 
Residential Service — Schedule R-2, and 

Commercial Service — Schedule C-1. Docket No. 1042. 

Northwest Carolina Utilities, Inc. to the Commission. Rural Lines 
Extension Plan approved. Docket No. 887. 

Northwest Carolina Utilities, Inc. to the Commission. Contract with 
New River Light and Power Company to build transmission line to 
connect with lines of Northwest Carolina Utilities, Inc. Approved. 
Docket No. 1028. 



76 N. C. Utilities Commission 

Northwest Carolina Utilities, Inc. to the Commission. Application 
for authority to discontinue 5% penalty charge. Approved. Docket No. 
1411. 

Northwest Carolina Utilities, Inc. Application by Jesse Blalock for 
installation of electric service. Adjusted. Docket No. 1331. 

Northwest Carolina Utilities, Inc. Petition by Citizens of Marshall 
and Bakersville, Mars Hill and Toecane for adequate and serviceable 
power at reasonable rates. Adjusted. Docket No. 953. 

Northwest Carolina Utilities, Inc. Complaint by Mars Hill College 
of electric rates. Adjusted. Docket No. 1152. 

Northwest Carolina Utilities, Inc. Complaint by Mrs. W. L. Riles of 
Blowing Rock of charges. Dismissed. Docket No. 1379. 

Northwest Carolina Utilities, Inc. Petition by citizens of Sugar 
Grove, Cove Creek and Valle Crucis for reduction in rates. Granted. 
Docket No. 1102. 

Ocracoke Power and Light Company to the Commission. Rates 
filed and approved. Docket No. 1173. 

Pineville Telephone and Electric Company to the Commission. 
Schedules for lighting and power filed and approved. Docket No. 1062. 

Pineville Telephone and Electric Company to the Commission. 
Rates for street lighting for Town of Pineville filed and approved. 
Docket No. 1040. 

Pineville Telephone and Electric Company to the Commission. Ap- 
plication for authority to put in water heating rate at Pineville. 
Allowed. Docket No. 1137. 

Roanoke Utilities Company. Complaint by citizens of Dare County 
of excessive rates and charges. Adjusted. Docket No. 920. 

Roanoke Utilities to Commission. Application for approval of ser- 
vice charge and meter sale. Denied. Docket No. 1440. 

Roanoke Utilities Company. Complaint by Mrs. Mabel J. Evans of 
electric lighting arrangement and excessive charge. Adjusted. Docket 
No. 1122. 

Rocky Mount, City of, to the Commission. Application for authority 
to extend electric light and power lines to serve adjacent territory. 
Closed for want of prosecution. Docket No. 520. 

Taylor, R. L. Customers of Taylortown complain of service. Ad- 
justed. Docket No. 1033. 

Tide Water Power Company to the Commission. Following rates 
filed and approved: 

Commercial Lighting and Power — New 

Hanover County. Docket No. 968. 

General Lighting and Power — New 

Hanover County. Docket No. 1417. 

General Lighting and Power — New 

Hanover County. 
General Lighting and Power — Transmission 

System. 
Residential Lighting — New Hanover County. 
Residential Lighting — Transmission 

System. Docket No. 1201. 



Decisions and Adjustments of Complaints 77 

Tide Water Power Company to the Commission. Rates for com- 
mercial lighting and power in competitive zones adjacent to city limits 
of Kinston. Approved. Docket No. 940. 

Tide Water Power Company to the Commission. Street car fares in 
Wilmington. Approved. Docket No. 1044. 

Tide Water Power Company to the Commission. Application for 
authority to destroy records of electric, gas and water companies (other 
than those marked "permanently") at option after having been pre- 
served for the specified periods of time. Approved. Docket No. 1283. 

Tide Water Power Company. Complaint by Hargrove Bellamy of 
charges for commercial lighting, including charge for elevator service. 
Adjusted by rates filed later. Docket No. 935. 

Tide Water Power Company to the Commission. Rates for street 
lighting service. Approved. Docket No. 1438. 

Tide Water Power Company. Complaint by Mrs. T. S. Bender of 
Pollocksville of services. Adjusted. Docket No. 1156. 

Tide Water Power Company. Complaint by E. B. Bugg, Hotel Wil- 
mington, of excessive rates for elevator. Adjusted. Docket No. 989. 

Tide Water Power Company. Complaint by Charles E. Johnson of 
holding open lone extension to his plant at Tabor City for service to 
other parties. Dismissed. Docket No. 894. 

Tide Water Power Company. Application by Mrs. W. R. Marton for 
light service for filling station. Adjusted. Docket No. 1416. 

Tide Water Power Company. Complaint by Percy J. Melvin of 
service at White Lake, Elizabethtown. Dismissed. Docket No. 1206. 

Tide Water Power Company. Complaint by E. A. Raspberry of 
monthly bill. Adjusted. Docket No. 974. 

Tide Water Power Company. Complaint in re manner of billing to 
Richlands Motor Sales. Adjusted. Docket No. 1214. 

Virginia Electric and Power Company to the Commission. Indus- 
trial service rate filed and approved. Docket No. 918. 

Virginia Electric and Power Company to the Commission. Indus- 
trial Service rate — Schedules Nos. 9 and 10 filed and approved. Docket 
No. 1299. 

Virginia Electric and Power Company to the Commission. Resi- 
dential Service Rate (Schedule No. 1), General Service Rate (Schedule 
No. 2) and General Service Rate (Schedule No. 5) filed and approved. 
Docket No. 1148. 

Virginia Electric and Power Company to the Commission. Appli- 
cation for authority to discontinue electric range and water heater 
installation plan. Approved. Docket No. 1138. 

Virginia Electric and Power Company. Complaint by Citizens of 
Ahoskie and Winton of service and request for additional transmission 
lines. Adjusted. Docket No. 808. 

Virginia Electric and Power Company. Complaint of service by 
Town of Scotland Neck. Adjusted. Docket No. 531. 

West, G. W. Citizens East of Lumberton complain of service and 
excessive rates. Dismissed. Docket No. 924. 



78 N. C. Utilities Commission 

EXPRESS COMPANIES 

APPLICATION OF THE RAILWAY EXPRESS AGENCY, INC., FOR 
AUTHORITY TO CLOSE ITS OFFICE AT ARARAT. 

Order 

The above application dated September 16, was filed with this 
Commission on September 17, by its Route Agent, J. R. Sowell of 
Greensboro. Notice was posted at Ararat on September 12, 1938, 
advising the public that application would be made to me for permis- 
sion to close its office there, effective October 1, 1938. 

Applicant furnished a statement of revenue received at this station 
for period of 25 months, from July, 1936 to July, 1938, inclusive, the 
average of which was only $2.89, there being several months during 
this period during which no express was received or forwarded. It is 
stated by applicant that the rail agent has tendered his resignation to 
the Express Company as express agent also for which he has received 
in the past a small commission. It is further stated that the office is very 
little used for the reason that the roads into and out of Ararat are poor, 
and patrons of the company prefer to go to either Mount Airy or Pilot. 

In view of the small amount of business handled and the conditions 
existing at Ararat, along with the fact no one has filed any opposition 
to the proposal, applicant will be permitted to close its office there, 
subject to further investigation of same on complaint. 

It is therefore ordered. That application of the Railway Express 
Agency, Inc., for authority to close its office at Ararat be, and the same 
is, hereby granted. 

This the 28th day of September, 1938. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner. 

R. O. Self, Chief Clerk. 
Docket No. 1414. 

Railway Express Agency to the Commission. Application for author- 
ity to close agency at Ararat. Granted. Docket No. 1414. 

Railway Express Agency to the Commission. Application for author- 
ity to close agency at Bridgewater. Granted. Docket No. 1351. 

Railway Express Agency. Hertford citizens protest discontinuance 
of service. Adjusted. Docket No. 1101. 

Railway Express Agency to the Commission. Application for author- 
ity to discontinue agency at Parkersburg. Granted. Docket No. 903. 

Southeastern Express Company to the Commission. Application for 
authority to discontinue agency at Collettsville. Granted. Docket No. 
1321. 

Southeastern Express Company to the Commission. Application for 
authority to discontinue agency at Donnaha. Granted. Docket No. 1274. 

Southeastern Express Company to the Commission. Application for 
authority to close agency at Rockford. Granted. Docket No. 1273. 



Decisions and Adjustments of Complaints 79 

Southeastern Express Company to the Commission. Application for 
authority to close agency at Willetts. Granted. Docket No. 393. 

Gas Companies 

Concord and Kannapolis Gas Company to the Commission. Rates, 
rules and regulations for Concord and Kannapolis. Approved. Dockets 
No. 950 and No. 1202. 

Duke Power Company to the Commission. Gas rates for Burlington, 
Charlotte, Greensboro, High Point, Mount Airy, Salisbury and Winston- 
Salem filed and approved. Docket No. 1237. 

Durham Gas Company to the Commission. Rates for Durham. Ap- 
proved. Docket No. 1409. 

Elizabeth and Suburban Gas Company to the Commission. Gas 
Refrigerator flat rate for Elizabeth City. Approved. Docket No. 1308. 

Henderson and Oxford Gas Company to the Commission. Applica- 
tion for authority to discontinue service of manufactured gas in Oxford. 
Granted. Docket No. 8671/2. 

Henderson and Oxford Gas Company to the Commission. Rates for 
Henderson. Approved. Docket No. 1261. 

Henderson & Oxford Gas Company. Frank Clay. Complaint of ser- 
vice in re gas stove. Adjusted. Docket No. 1019. 

North Carolina Gas Company to the Commission. Rates, rules and 
regulations for service in Lexington, Erlanger and Thomasville, and 
part of Davidson County served by mains of company; also in Reids- 
ville, Leaksville, Spray and Draper, and part of Rockingham County 
served by mains of company. Approved. Dockets Nos. 1011 and 1240. 

Piedmont Gas Company to the Commission. Rate for combination 
cooking, water heating and refrigerating for domestic and commercial 
consumers. Approved. Docket No. 1262. 

Raleigh Gas Company to the Commission. Rates for Raleigh. Ap- 
proved. Dockets Nos. 1001 and 1409. 

Motor Vehicle Lines 

FRANCHISE CERTIFICATES GRANTED UNDER AUTHORITY OF 
CHAPTER 136, PUBLIC LAWS OF NORTH CAROLINA, 1927, 
OUTSTANDING ON OCTOBER 1, 1938. 
Name of Company, Description of Route. 

Atlantic Greyhound Corporation, Charleston, West Virginia, A. M. 
Hill, President, Charleston, West Virginia, J. L. Gilmer, Vice-Presi- 
dent, Winston-Salem, N. C. Certificate No. 429. 

Passenger: North Carolina-Virginia State Line to North Caro- 
lina-South Carolina State Line via Norlina, Raleigh, Goldsboro, Wil- 
mington and Bolivia, Highways Nos. 50, 10, 40, 20 and 30. Tin City, 
North Carolina, to Wallace, North Carolina, Highway No. 41; Wilson 
to Greenville, Highway No. 91; Fayetteville to the North Carolina- 
South Carolina State Line via Raeford and Laurinburg, Highway 
No. 24 without privilege of local operation over that part of the route 



80 N. C. Utilities Commission 

between Fayetteville and Raeford. Raleigh to Fayetteville via Lil- 
lington, Highway No. 21, operation over that part of the route 
between Raleigh and Lillington being restricted to the transportation 
of passengers whose origin or destination is between Lillington and 
Fayetteville, not including either, and points, included on the route 
above given, south of Fayetteville. Durham to Henderson via Ox- 
ford, Highways 75 and 48; Winston-Salem to Charlotte, Highways 
Nos. 65, 90 and 26; Winston-Salem to N. C.-Va. State Line, destina- 
tion Martinsville Va., etc. No. 77; Winston-Salem to the N. C.-Va. 
State Line, destination Hillsville, Virginia, Highway No. 66 via 
Mount Airy; Winston-Salem to High Point, No. 77; Winston-Salem 
to Greensboro, via Kernersville, No. 60; Winston-Salem to North 
Carolina-Tennessee State Line via North Wilkesboro and West Jef- 
ferson, Nos. 60 and 16; also via No. 60 via Boone and Zionville; Jef- 
ferson to Boone, 691; Winston-Salem to Lexington No. 66; Salisbury 
to Mocksville, No. 80; Charlotte to North Carolina-South Carolina 
State Line via Pineville, Nos. 26 and 261; Statesville to Mount Airy, 
Nos. 26, 268 and 80; Greensboro to the North Carolina-Virginia 
State Line Highway No. 70, destination Danville, Va. Kernersville 
to intersection of Highways 771 and 77 over Highway No. 771; 
Asheville to Oteen, Highway No. 10; Asheville to North Carolina- 
Tennessee State Line, Highway No. 20; destination Newport, Ten- 
nessee; Hendersonville to the N. C.-S. C. State Line at Chestnut 
Springs on route to Greenville, S. C, Highway No. 69; Brevard to 
Hendersonville, Highway No. 28; Brevard to North Carolina State 
Line, Highway No. 276; Winston-Salem over Route No. 48 via 
Walkertown Junction, Stokesdale, Wentworth and Route 54 to Reids- 
ville, limited as to passengers riding between Corrum's Store and 
Reidsville. Charlotte to the North Carolina-South Carolina State 
Line via Gastonia and Kings Mountain, Highways Nos. 20 and 205, 
with the understanding that the Queen City Coach Company has an 
equal right to operate between Charlotte and Kings Mountain via 
Highway No. 20 via Belmont, McAdenville, Lowell, Ranlo and 
Gastonia. Bus station in Gastonia to Bus Station in Kings Mountain, 
Highway No. 7, with the understanding that the same privilege is 
granted to the Queen City Coach Company in accordance with agree- 
ment dated August 24, 1932, copy of which appears on the back of 
Franchise Certificate No. 240, outstanding in the name of the Queen 
City Coach Company. Asheville and Brevard via Hendersonville 
U. S. Highways Nos. 25 and 64 (Formerly Highways Nos. 69 and 
28.) Franklinton Highway No. 56 to Louisburg and Louisburg High- 
way No. 39 to Henderson. 

Barbour's Motor Express, R. H. Barbour, Fuquay Springs, N. C. Cer- 
tificate No. 386. 

Freight: Raleigh and Fayetteville, 21; and between Cardenas and 
Fayetteville, 55, 60 and 22, via Angier, Coats, Erwin, Dunn and 
Godwin. 



Decisions and Adjustments of Complaints 81 

Black's Motor Expresss, D. J. Black, Owner, Wilmington, N. C. Cer- 
tificate No. 373. 

Freight: Wilmington to Sanford via Del way, Clinton, Dunn, Lil- 
lington and Jonesboro, 60 and 53; Wilmington to New Bern, No. 30. 

Blizard Motor Express, Inc., Mount Airy, N. C. Certificate No. 448. 
Freight: Mount Airy to Greensboro via Winston-Salem and 
Kernersville 66 and 60. 

Blue Eagle Bus Line, C. C. Sidden, Owner, Winston-Salem, N. C. Cer- 
tificate No. 452. 

Passenger: Starting South on Main Street at Fourth Street to 
Third Street; west on Third Street to Liberty Street; north on 
Liberty Street to Patterson Avenue; north on Patterson to Glenn 
Avenue; north on Glenn Avenue to City Limits; thence from City 
Limits to Ogburn Station on Route U. S. 311, west from Ogburn 
Station to Oak Summit; Ogburn Avenue to Chemical Avenue; thence 
with Ogburn Avenue to one block beyond Newton Street; thence to 
the right with Capps Street and return on Tise Avenue to Efird 
Street; thence with Efird Street to Glenn Avenue as outlined on 

map of Winston-Salem. 

Booze Truck Lines, Roanoke, Va. Certificate 432. 

Freight: Winston-Salem, N. C. to N. C. -Virginia Line, Highway 
77 destination Roanoke, Va. 

BucKNER Transfer Company, 101 S. Lexington Ave., Asheville, N. C. 
Certificate No. 442. 

Freight: Spruce Pine and Asheville, N. C, daily. 

Calloway, P. E., Washington, N. C. Certificate No. 458. 

Freight: Washington, N. C. and Swan Quarter, N. C, over U. S. 
Highway No. 264 and N. C. 91. 

Capital Coast Express Company, George Ross, President, Raleigh, 
N. C. Certificate No. 450. 

Freight: Raleigh to Kinston, Highway No. 10; Kinston to New 
Bern via No. 10 and via Nos. 12 and 30; Kinston to Goldsboro via 
Snow Hill, Highway Nos. 12 and 102; Wilmington to Goldsboro, 
Highway No. 40. 

C. & S. Motor Express Company, E. F. Caudill, Secretary and Treas- 
urer, North Wilkesboro, N. C. Certificate No. 291. 

Freight: North Wilkesboro and Winston-Salem via Highway No. 
60, via Yadkinville and Brooks Cross Roads. 

Carolina Coach Company, H. H. Hearn, General Manager, Raleigh, 
N. C. Certificate No. 147. 

Passenger: Raleigh to Charlotte via Greensboro and Salisbury, 
10, 15; Raleigh to Fayetteville via Lillington and Dunn, 21, 60, 22; 
Raleigh to North Carolina-Virginia State Line via Rocky Mount, 
Tarboro, Rich Square, Aulander, Winton, Gatesville, Sunbury, and 
Corapeake, 90, 12, 305, 30; Greenville to Tarboro via Bethel, 11, 90; 
Zebulon to Wilson, 91; Durham to Chapel Hill, 75; Bethel to Wil- 
liamston, 90; Raleigh to Virginia-North Carolina State Line via 



82 N. C. Utilities Commission 

Creedmore and Oxford over Highways Nos. 31 and 75; Greensboro 
and Raleigh via Chapel Hill over Route 10 from Greensboro to 
Burlington; 10- A from Burlington to Graham, then over Route 54 
from Graham to Nelson and Route 10 from Nelson to Raleigh. 
Greenville to Bethel, N. C. Highway No. 11; Tarboro to Leggett, 
N. C. Highway No. 44; Leggett to Junction U. S. Highway No. 258 
on N. C. Highway No. 95; Rich Square to Woodland on U. S. High- 
way No. 258; Woodland to Conway on N. C. Highway No. 45; Con- 
way to Murfreesboro on U. S. Highway No. 158 and Murfreesboro 
to Winton on N. C. Highway No. 35; Charlotte and Raleigh via 
Albemarle and Sanford Highways Nos. 27, 74, 75 and 50; From U. S. 
Highway No. 27 on N. C. 705 to Hemp and return on same route to 
U. S. Highway 27; on N. C. Highway No. 742 from Red Cross to 
Oakboro and return on same route to Red Cross. 

Carolina-Norfolk Truck Line, J. M. Spence, President, 37 Nebraska 
Street, Norfolk, Va. Certificate No. 274. 

Freight: Wilson to North Carolina- Virginia State Line, destina- 
tion Norfolk, Va., via Tarboro, Rich Square, Aulander, Winton, 
Gatesville, Sunbury and Corapeake, 42, 12, 305, 30. 

Carolina Scenic Coach Line, McD. Turner, 231 East Main St., Spar- 
tanburg, S. C. Certificate No. 68. 

Passenger: Hendersonville to Tryon, 191; Elk Park to North 
Carolina-South Carolina State Line near Cliffside, 194, 19, 20, 207, 
via Newland, Woodlawn, Marion and Rutherfordton; Hendersonville 
to Asheville, 191 (without privilege of picking up passengers in 
Hendersonville for Ashevillle, except for the part of Asheville west 
of the French Broad River, known as West Asheville, or on the 
East side of the French Broad River for Hendersonville). N. C.-S. C. 
State Line to Shelby over Highway No. 18. 

Central Coach Lines, Inc., Raleigh, N. C. Certificate No. 440. 

Passenger: Lumberton via State Highway No. 41 to Elizabeth- 
town; thenCe by U. S. Highway No. 701 by ways of White Lake to 
Clinton; thence by U. S. Highway No. 421 to Dunn; thence by U. S. 
Highway No. 301 to Smithfield and Selma, Kenly, Lucama to Wil- 
son; thence by State Highway No. 42 to Pinetops at a junction with 
U. S. Highway No. 258 and on the same highway to Tarboro. 

Chapel Hill and Durham Freight Line, B. W. Clark, Owner, Chapel 
Hill, N. C. Certificate No. 430. 

Freight: Chapel Hill and Durham, Route No. 75. 

City Coach Company, Charlotte, N. C. Certificate No. 426. 

Passenger: Cramerton north across Route 20 to McAdenville and 
Lowell, including Spencer Mountain Highway to Priscilla Mill and 
back to Gastonia over Highway 29. Union Bus Station in Gastonia 
to Ridge, N. C. over U. S. Highway No. 321. 

Cole, W. E., Hendersonville, N. C. Certificate No. 437. 

Freight: Asheville and Hendersonville over Highway No. 25; 
thence to Brevard over Highway No. 64; thence from Brevard over 
Highways No. 280 and 191 to Asheville daily. Beyond Brevard to 



Decisions and Adjustments of Complaints 83 

Lake Toxoway via Rosman over Highway No. 64, Asheville to 
Spruce Pine via Burnsville over Highway No. 19. 

Comer Motor Express, Kinston, N. C. Certificate No. 446. 

Freight: Kinston and Wilmington via Route No. 121 to Rich- 
lands, via Route No. 24 to Jacksonville, via Route No. 30 to Wil- 
mington. 

Danville & Durham Motor Express Line, J. A. Manooch, 726 Temple 
Avenue, Danville, Va. Certificate No. 312. 

Freight: Durham to the North Carolina- Virginia State Line, 
destination, Danville, Va., 55, 48, 14, via Roxboro and Leasburg; 
Spray to the North Carolina-Virginia State Line, 709, 65, 70, via 
Reidsville; Spray to the North Carolina- Virginia State Line via the 
highway following the Dan River. (Authority to pick up in Spray 
for Reidsville or in Reidsville for Spray is not granted. ) 

Dayton Brothers Bus Line, Incorporated, Murphy, N. C. Certificate 
No. 419. 

Passenger: Franklin and Murphy via Haysville, 28; Murphy to 
N. C.-Tenn. State Line down to the Hiawassee River via Unaka. 

E. T. and W. N. C. Motor Transportation Company, J. E. Vance, 
Vice-President, Johnson City, Tennessee. Certificate No. 181. 

Freight: Swiss to North Carolina-Tennessee State Line, via 
Spruce Pine and Elk Park, 69; Spruce Pine to N. C.-Tenn. State 
Line via Bakersville, 19; Operation over 692, 197, 104 from their 
junction with 69 to their junction with 19; Elk Park to Banner 
Elk, 194; Cranberry to Cranberry via Newland, Linville, Pineola 
and Crossnore, 194, 181, 691, 194. 

Engelhard-Washington Bus Company, Mrs. S. M. Gibbs, Owner, 
Swan Quarter, N. C. Certificate No. 401. 

Passenger: Washington and Engelhard; Washington over 91 via 
Belhaven, Scranton, Swan Quarter to Engelhard. Highway No. 92 
from the intersection of Highway No. 91 to Bay view and community. 

Fort Bragg Coach Company, C. F. Harris, Fayetteville, N. C. Cer- 
tificate No. 166. 

Passenger: Fayetteville to Fort Bragg, 53. (Leased to the Greens- 
boro-Fayetteville Bus Line.) 

Fredrickson Motor Express Corporation, Chas. H. Fredrickson, Pres- 
ident, Charlotte, N. C. Certificate No. 70. 

Freight: Charlotte to Greensboro, 15, 10; Lexington to Winston- 
Salem, 66; Charlotte to Statesville, 26; Charlotte to Lenoir, 27, 16, 
10, 17; Charlotte to Asheville, via Shelby and Hendersonville 20, 
28, 69; Statesville to Winston-Salem 90, 48; Salisbury to Asheville, 
via Statesville, 10; Shelby to Lincolnton, 206; Cherryville to Besse- 
mer City, 274. 

Georgia Motor Express, Incorporated, 10 Krog Street, Atlanta, Ga. 
Certificate No. 421. 

Freight: Asheville to the North Carolina-Georgia State Line, 
destination Atlanta, Ga. via Waynesville, Sylva and Franklin, 10, 



84 N. C. Utilities Commission 

285 (without privilege of local operation on that part of route be- 
tween Asheville and Waynesville). 

Geringer, Hurley, New Bern, N. C. Certificate No. 321. 

Freight: New Bern to Beaufort, 10; Beaufort to intersection of 
101 with 10, near Havelock, 101; Beaufort to Atlantic, County High- 
way. 

GoLDSTON Motor Express, J. M. and E. H. Goldston, Owners, Spray, 
N. C. Certificate No. 402. 

Freight: Draper and Greensboro via Leaksville-Spray and Reids- 
ville, 770, 48 and 70 and between Leaksville and Winston-Salem 
via Stoneville, 770 and 77. 

Greensboro-Fayetteville Bus Line, Incorporated, Asheboro, N. C. 
Certificate No. 101. 

Passenger: Greensboro to Fayetteville, via Asheboro, Pinehurst, 
Southern Pines, Aberdeen and Raeford, 70, 75, 702, 50, 70, 24; Dur- 
ham to Rockingham, via Sanford and Hamlet, 75, 50, 204, 20; Can- 
dor to Rockingham via Norman and EUerbe, 170, 75; Greensboro 
to Fayetteville via Sanford, 60, 53; High Point to Asheboro via 
Randleman, 77 and 70; Asheboro to Siler City via Ramseur, 90. 

Habit Brothers, John and Joe Habit, Edenton, N. C. Certificate No. 
233. 

Freight: Washington to North Carolina- Virginia State Line via 
Williamston, Windsor, Edenton, Elizabeth City and South Mills, 
30, 342, 34, 341; Williamston to Washington, 30; Washington to 
New Bern, 30 and over 10 for interstate haul between New Bern 
and Beaufort via Morehead City; Elizabeth City to North Carolina- 
Virginia State Line via Sligo and Moyock, 34. Williamston over 
Highway No. 64 to Plymouth, Roper, Creswell and Columbia. 

Hampton Roads Transportation Company, J. L. Wright, 912 Water 
Street, Norfolk, Va. Certificate No. 156. 

Freight: Elizabeth City to North Carolina-Virginia State Line 
via Moyock, 34; Elizabeth City to North Carolina- Virginia State 
Line via South Mills, 34, 341. 

Helms Motor Express, Mrs. Mabel D. Helms, Owner, Albemarle, 
N. C. Certificate No. 273. 

Freight: Raleigh to Charlotte via Sanford, Carthage, Biscoe, 
Troy, Wadeville, Mount Gilead, Albemarle, Red Cross and Allen 
over National Highway No. 1; Raleigh to intersection of National 
Highways Nos. 15 and 501; six miles south of Sanford; thence with 
Nos. 15 and 501 to Carthage; thence with State No. 27 to Troy; 
thence with No. 109 to Mount Gilead; thence with No. 73 to Albe- 
marle; thence with No. 27 to Charlotte, Durham to Aberdeen via 
Chapel Hill, Pittsboro, Sanford, Cameron, Vass and Southern Pines 
National Highways Nos. 15 and 501 and No. 1; Aberdeen to Pine- 
hurst, National Highways Nos. 15 and 501 and Pinehurst to South- 
ern Pines Highway No. 2. Pittsboro to Raleigh via Apex and Cary, 
Highway No. 64 and Pinehurst to Biscoe via West End, Eagle 



Decisions and Adjustments of Complaints 85 

Springs, Samarcand and Candor over Highway No. 2; Pinehurst to 
Carthage via Highways Nos. 15 and 501. 

HiLDEBRAND, E. H., Operating as Leicester Bus Line, Asheville, N. C. 
Certificate No. 453. 

Passenger: Between Leicester over County Home Road and 
Emma Road to Asheville City Limits; then with West Haywood to 
destination on Patton Avenue, Highway No. 63. 

H. Hunt & Company, 120 Water Street, Wilmington, N. C. Certificate 
No. 263. 

Freight: Wilmington to Fayetteville via Elizabethtown, 20, 21; 
Elizabethtown to Lumberton via Clarkton and Bladenboro, 23, 211; 
Fayetteville to Lumberton, 22. 

Independence Bus Corporation, 306 Boxley Building, Roanoke, Va. 
Certificate No. 451. 

Passenger: Elkin to the N, C.-Va. State Line, destination Wythe- 
ville, Va. via Sparta, Highway No. 26. 

Inter-Carolina Motor Bus Company, 32 South Lexington Avenue, 
Asheville, N. C. Certificate No. 406. 

Passenger: Charlotte, N. C. and N. C.-S. C. State Line over N. C. 
Highway 15. (This line leased to Smoky Mountain Stages, Incor- 
porated, Asheville, N. C.) 

Leaksville-Danville Bus Line, J. C. Gilley, Spray, N. C. Certificate 
No. 99. 

Passenger: Leaksville to N. C.-Va. State Line, destination Dan- 
ville, Va., Leaksville-Spray to Reidsville, 54, 65; Reidsville to 
Burlington, 54. Leaksville-Spray and State Line on route to Fieldale, 
Va., Highway No. 106 (old Highway No. 709) to State Line. 

LiNcoLNTON Bus COMPANY, J. R. Lcwis, Owncr, 32 Lexington Avenue, 
Asheville, N. C. Certificate No. 416. 

Passenger: Gastonia to Lincolnton over State Highway 16. 

McLeod's Transfer, Ned McLeod, Owner, Broadway, N. C. Certificate 
No. 385. 

Freight: Sanford to Wilmington, 53, 60 and 40 (Without priv- 
ilege of local operation south of Clinton on 60 and 40). 

Mars Hill-Weaverville Bus Line, M. J. and V. V. Holcombe, Ashe- 
ville, N. C. Certificate No. 433. 

Passenger: Asheville Union Bus Station and Mars Hill over 
Highways Nos. 23 and 36. Beginning at Craggy across French Broad 
River on Gormon's Bridge on temporary No. 63 to its intersection 
with State Highway No. 630; along and over said Highway to Elk 
Mountain Cotton Mill; thence County Lateral Road known as Elk 
Mountain Road to Brown's Store; thence Burns ville Hill Road to 
its intersection with temporary Highway No. 63 at Woodfin; thence 
State Highway No. 63 to its intersection with Lexington Avenue 
within the City of Asheville; thence over such streets as permitted 
by the city to the Union Bus Terminal. 



86 N. C. Utilities Commission 

M. & M. Motor Express, B. P. Jones, Owner, North Wilkesboro, N. C. 
Certificate No. 445. 

Freight: North Wilkesboro to Charlotte via Taylorsville, Con- 
over, Newton and Lincolnton over Routes Nos. 16, 321 and 27 pro- 
vided that the said company shall not deliver or accept any freight 
or express at any point which is now served by Fredrickson Motor 
Express Corporation except shipments from North Wilkesboro to 
Newton and from Newton to North Wilkesboro. Wilkesboro and 
Lenoir via Kings Creek and Boomer, Highway No. 18. 

Miller Motor Express, W. W. Miller, Jr., 314 North Caldwell Street, 
Charlotte, N. C. Certificate No. 304. 

Freight: Charlotte to the North Carolina-South Carolina State 
Line, 26 and 261, destination Fort Mill, S. C, Rock Hill, S. C, and 
Chester, S. C. Charlotte to Wilmington via Monroe, Wadesboro, 
Rockingham, Hamlet, Laurinburg, Lumberton and Bolton, 20; 
Laurinburg to Fayetteville via Raeford, 24; Fayetteville to Lum- 
berton, 22; Lumberton to Bolton, 211. 

Motor Transit Company, R. S. Koonce and M. B. Koonce, 324 West 
Lane Street, Raleigh, N. C. Certificate No. 292. 

Freight: Raleigh to Greensboro, 10; Greensboro to Fayetteville 
via Sanford, 60, 53; Greensboro to Fayetteville via Asheboro, Biscoe, 
Candor, Eagle Springs, Pinehurst, Southern Pines, Aberdeen and 
Raeford, 70, 75, 702, 50, 70, 24; Asheboro to Ramseur, 90; Hender- 
son to North Carolina-Va. State Line, destination Richmond, Va. 
U. S. 1. (This route to include via Warrenton, 48); Greensboro to 
Winston-Salem via High Point, Highways 10 and 77. 

National Convoy and Trucking Company, Charlotte, N. C. Certificate 
No. 404. 

Freight: Charlotte to Sanford via Albemarle, Badin, Mt. Gilead 
and Troy, Highways 27, 740, 74, 515, 51, 74, 75 and 50; High Point 
to Denton via Asheboro, Biscoe and Troy, Highways 74 and 109; 
Asheboro to Albemarle via New London, Highways 62 and 80. 

Norfolk Southern Bus Corporation, Norfolk, Va. Certificate No. 308. 

Passenger: Elizabeth City to North Carolina- Virginia State Line, 
destination Norfolk, Va., via Camden, Sligo and Moyock, 34; Wash- 
ington, N. C, to the N. C.-Va. State line, destination, Norfolk, Va., 
via Williamston, Windsor, Edenton, Elizabeth City and South Mills. 

Passenger and Freight: Knott's Island (which is detached from 
the main land of N. C. by Currituck Sound) from the N. C.-Va. 
State line to Woodley;. thence to Knott's Island for both interstate 
and intrastate passenger and freight traffic. 

North Wilkesboro-Statesville Motor Express, James S. Caudill, 
Owner, North Wilkesboro, North Carolina. Certificate No. 410. 

Freight: Statesville and North Wilkesboro, Highways 90 and 16. 

Oteen Bus Line, Box 262, Oteen, N. C. Certificate No. 411. 

Passenger: Asheville, N. C. and Oteen, N. C. From Pack Square 
in Asheville over College Street into Highway 20 through Beau- 
catcher Tunnel down to the intersection of Highways 10 and 20 at 



Decisions and Adjustments of Complaints 87 

Jack Weaver's restaurant via the Municipal Golf Course and Recrea- 
tion Park to property known as the United States Public Health 
Hospital at Oteen. 

Parker, George E., trading as Parker & Stout Transfer Company, 
High Point, N. C. Certificate No. 449. 

Freight: High Point to New Bern over U. S. 70; High Point to 
Raleigh over U. S. 70; to Washington over 264; to Williamston over 
17; return over Route 64 to Raleigh; thence to High Point on 70; 
High Point to Rockingham over U. S. 220; to Wilmington on 74; 
return by 421 to Julian; thence to High Point over 61. 

Piedmont Coach Company, Wadesboro, N. C. Certificate No. 454. 

Passenger: Wadesboro to New London via Albemarle over Route 
No. 80. From New London to the intersection of No. 62 and 109 
over No. 62 and from said intersection over Route No. 109 to 
Winston-Salem via Thomasville. Salisbury and Norwood via Albe- 
marle, Highway No. 80; and between Albemarle and Badin, County 
Highways. 

P. & F. Motor Express, Inc., F. L. Formy Duval, President, Wilming- 
ton, N. C. Certificate No. 295. 

Freight : Wilmington to Charlotte via Bolton, Lumberton, Laurin- 
burg, Hamlet, Rockingham, Wadesboro, and Monroe, 20; Boardman 
to Lumberton via Fairmont, 72 and 70; Lumberton to Raeford via 
Red Springs, 70; Whiteville to Tabor, 23; Wilmington to Shallotte, 
30; Shallotte to Whiteville, 130; Supply to Southport, 130; South- 
port to Town Creek, 130 and 303 for shipments north of Wilming- 
ton and west of Bolivia. 

Queen City Coach Company, Incorporated, L. A. Love, Manager, 
Charlotte, N. C. Certificate No. 240. 

Passenger: Wilmington to Asheville via Lumberton, Charlotte 
and Rutherfordton, 20; Fayetteville to North Carolina-South Caro- 
lina State Line via St. Pauls, Lumberton and Rowland, 22; Kings 
Mountain to North Carolina-South Carolina State Line near Grover, 
205; Gastonia to Cherry ville, county highways; Charlotte to Ashe- 
ville via Lincolnton, Newton to Marion, 27, 16, 10; Marion to Bak- 
ersville via Spruce Pine, 19; Bat Cave to Hendersonville, 28; Mur- 
phy to North Carolina-South Carolina Line, 10; Charlotte to Gas- 
tonia route is understood to include operation via 20 and also the 
old highway via Belmont, McAdenville, Lowell and Ranlo; Wades- 
boro to North Carolina-South Carolina State Line via Morven and 
McFarlan, 80; from the intersection of North Carolina Highway 
151 with N. C. Highway 20 to N. C.-S. C. State line over N. C. 
Highway 151; Fayetteville to Kenansville Highway 40, via Clinton 
and Warsaw; Kenansville to Kinston, Highway 11 via Deep Run; 
Wilmington to Kure's Beach via Carolina Beach Highway 40. High- 
way No. 7 between the Bus Station in Gastonia and Bus Station in 
Kings Mountain with the understanding that siimlar authority is 
hereby granted the Atlantic Greyhound Corporation to operate over 
same highway as is set forth in accordance with agreement between 



88 N. C. Utilities Commission 

the Queen City Coach Company and the Queen City Lines, Incor- 
porated, dated August 24, 1932. Maxton to the intersection of High- 
way No. 71 and No. 22 via Red Springs over Highway No. 71; from 
Raeford to Lumberton via Red Springs over highways Nos. 71 and 
211; and from Lumberton to the N. C.-S. C. State line over High- 
way No. 202. Salisbury and Newton via Statesville Highway No. 
70 (old Highway No. 10); Conover to intersection of Highways 70 
(old Highway No. 10) and 70A (Old Highway No. lOA); near 
Catawba Highway No. 70 A (Old Highway No. lOA). Lumberton 
and Clarkton via N. C. No. 211; from Clarkton to Elizabethtown 
via U. S. No. 701; from Elizabethtown to Junction N. C. 28 with 
U. S. 74 and 76 via N. C. 28; from Junction N. C. 28 with U. S. 74 
and 76 to Wilmington via U. S. 74 and 76. Between Salisbury and 
Shelby via Mooresville and Lincolnton via Highway N. C. 150; 
Chadbourn to the North Carolina-South Carolina State Line via 
Cerro Gordo via U. S. No. 76; Oteen to Asheville so as to include 
relocated U. S. No. 70 by Haw Creek School; Kenansville to Junc- 
tion N. C. 24 and U. S. 258 via N. C. 24; from Junction N. C. 24 
and U. S. 258 to Jacksonville via U. S. 258. Asheville and the 
N. C.-Tenn. State Line, Highways Nos. 20 and 212; Asheville and 
the N. C.-Tenn. State Line via Spruce Pine, Elk Park, Highways 
Nos. 20 and 69; Cane River Post Office to State Line No. 692; N. C. 
Highway No. 194 from Elk Park to Vilas and N. C. Highway No. 
60, with closed doors, from Vilas to Boone. Hickory and Boone via 
Lenoir and Blowing Rock No. 17. 

Railway Express Agency, Inc., 89 Luckie Street, N.W., Atlanta, Ga. 
Certificate No. 456. 

Freight: Salisbury and Norwood, Highway No. 80 via Granite 
Quarry, Rockwell, Gold Hill, Richfield, New London, Albemarle 
and Badin. 

Raleigh-Danville Motor Express, C. S. Manooch, 514 East Davie 
Street, Raleigh, N. C. Certificate No. 258. 

Freight: Raleigh to Durham via Henderson and Oxford, 50, 
57, 75. 

Rocky Mount-Norfolk Truck Line, 37 Nebraska Street, Norfolk, Va. 
Certificate No. 287. 

Freight: Rocky Mount to N. C.-Va. State Line 40, 48 and 12 via 
Weldon, Murfreesboro and Como. (For interstate operation only.) 

Safeway Coach Company, Kinston, N. C. Certificate No. 443. 

Passenger: Jacksonville and Rocky Mount via Richlands, Kin- 
ston, Snow Hill, Farmville and Pinetops over U. S. Highway No. 
258; thence from Pinetops to Rocky Mount over N. C. Route No. 43. 

Receivers of Seaboard Air Line Railway, Norfolk, Va. Certificate 
No. 422. 

Freight: Monroe to Hamlet over Route 20. Monroe and Wax- 
haw, Highway No. 75. 



Decisions and Adjustments of Complaints 89 

Seashore Transportation Company, James M. West, President, New 
Bern, N. C. Certificate No. 122. 

Passenger: Washington to Wilmington via New Bern, 30; Golds- 
boro to Beaufort via Kinston and New Bern, 10; Kinston to Pol- 
locksville via Trenton, 12; Beaufort to Atlantic, unnumbered high- 
way; Goldsboro to Rocky Mount via Wilson, 40; Wilson to Rocky 
Mount via Elm City and Sharpsburg, Highway 40. 

Shelby Transit Company, Inc., Shelby, N. C. Certificate No. 444. 

Passenger: Streets of City of Shelby; extension of East Marion 
Street, N. C. Highway No. 20; From City Limits to Cleveland County 
Fairgrounds; Extension of West Marion Street from City Limits 
to Dover and Ora Mills and to City Limits at East Lee Street. 

Smith's Transfer Company, Inc., T. Glen Miller, Jr., President, 
Lenoir, N. C. Certificate No. 435. 

Freight: Boone to the N. C.-Tenn. State Line, destination Bristol, 
Tenn. via Highway No. 60 via Vilas and Zionville; Zionville to 
Lansing via West Jefferson and Warrensville, Nos. 16 and 161; Vilas 
to Elk Park via Banner Elk, Highway No. 194; Blowing Rock to 
N. C.-Tenn. State Line via Linville, Newland, Cranberry and Elk 
Park; Highways 28, 181 and 69; Boone to North Wilkesboro, High- 
way No. 60; West Jefferson to Winston-Salem via Sparta and Dough- 
ton strictly upon condition that carrier shall not receive or deliver 
any intrastate shipments between Winston-Salem and Doughton 
and neither receive nor deliver any shipments from Winston-Salem 
to North Wilkesboro and from North Wilkesboro to Winston-Salem. 

Smith's Transfer Company, C. H. and V. J. Smith, Lenoir, N. C. 
Certificate No. 142. 

Freight: Hickory to North Carolina-Tenn. State Line via Mor- 
ganton, Asheville, Marshall, Walnut and Hot Springs, 10 and 20; 
Hickory to Boone, 17; Lenoir to Morganton, 18; Asheville to North 
Carolina-Tennessee State Line, Highway 10 via Waynesville, Dills- 
boro and Murphy; Asheville to Waynesville via Canton, High- 
way 10. 

Smoky Mountain Stages, Incorporated, Asheville, N. C. Certificate 
No. 400. 

Passenger: Asheville to North Carolina-Georgia State Line via 
Murphy, 10; Dillsboro via Franklin to N. C.-Ga. State Line, 285, 
and from Murphy to N. C.-Tenn. State Line, 28; Sylva to Cullowhee, 
106; Franklin to Pisgah Forest, 28; and 280 and 191 via Mills River 
and Avery's Creek to Asheville; Rosman to N. C.-S. C. State Line, 
Highway 283; Highway 60 from junction with 64 near Renger to 
N. C.-Ga. State Line near Culberson. 

J. W. Snow Bus Line, 432 Fairview Road, Biltmore, N. C. Certificate 
No. 346. 

Passenger: From Pack Square in Asheville south along Bilt- 
more Ave. to Biltmore; to old Fairview Road (old State Highway 
No. 20) to the Farmer's Federation Bldg. and return over same 
route. 



90 N. C. Utilities Commission 

SouTHERLAND BROTHERS, A. D. and N. M. Southerland, Goldsboro, N. C. 
Certificate No. 33. 

Passenger: Goldsboro to Washington via Kinston and Green- 
ville, 10, 11, and 91, 30. 

Stallings Transfer Service, Russell Stallings, Spring Hope, N. C. 
Certificate No. 227. 

Freight: Raleigh to Rocky Mount, No. 90; Zebulon to Rocky 
Mount via Wilson, Nos. 91 and 40. 

Thurston Motor Lines, D. J. Thurston, Box 1003, Wilson, N. C. Cer- 
tificate No. 399. 

Freight: Goldsboro, N. C. to N. C.-Va. State Line via Wilson 
and Rocky Mount, 40, optional over 481; Rocky Mount to William- 
ston via Tarboro and Bethel, 90; Williamston to Washington, 30; 
Washington to Wilson via Greenville and Farmville, 91; Wilson to 
Fayetteville via Smithfield and Dunn, Highway 22, with limits on 
shipments picked up in Dunn for Fayetteville or in Fayetteville for 
Dunn, provided he may operate by Erwin over Routes 60 and 55 
with shipments not originating in Dunn or Fayetteville for points 
north of Wilson. Wilson and Snow Hill via Stantonsburg over N. C. 
Highways Nos. 58 and 102; Between Tarboro and Kinston via Crisp, 
Fountain, Farmville and Snow Hill over U. S. Highway No. 258; 
Between Rocky Mount and New Bern via Pine Tops and Greenville 
to Vanceboro over N. C. Highway No. 43; and thence via Askin 
and Bridgeton over U. S. Highway 17; And between Bethel and 
Kinston via Greenville, Ayden, Grifton, and Graingers over N. C. 
Highway No. 11, subject to the following conditions: Thurston 
Motor Lines shall not accept at New Bern and at Vanceboro and 
at points intermediate shipments destined to Norfolk. That they shall 
not accept at Snow Hill, Goldsboro, Kinston and New Bern and at 
intermediate points, shipments destined for Snow Hill, Goldsboro, 
Kinston and New Bern or intermediate points. Rosemary and the 
N. C.-Va. State Line via Weldon, Murfreesboro and Como, High- 
ways Nos. 48 and 12. 

Tide Water Power Company, Wilmington, N. C. Certificate No. 447. 

Passenger: Beginning at Front and Princess Streets and over 
such streets as approved by City Council of Wilmington; thence on 
Route No. 20 to Wrightsville Beach via causeway and bridge to 
Wrightsville Beach and over such streets as may be approved by 
Wrightsville Board of Commissioners; Also over route from City 
Limits of Wilmington over old shell road to Wrightsville Sound. 

Turner Motor Lines, Incorporated, 210 Lynn Street, Danville, Va. 
Certificate No. 417. 

Freight: Virginia-N. C. State Line via Route 70 to Reidsville 
via Route 158 to Wentworth and via Route 48 to Winston-Salem. 

United Express Company, Henderson, N. C. Certificate No. 398. 
Freight: Henderson to Weldon via Norlina, 48. 



Decisions and Adjustments of Complaints 91 

Virginia-Carolina Coach Company, Richmond, Va. Certificate No. 
428. 

Passenger: Weldon and the N. C.-Va. State Line via Highway 
No. 40; Weldon to Rocky Mount, Highway No. 40, for both inter- 
state and intrastate operation. 

Virginia Dare Transportation Company, R. B. Etheridge and G. H. 
Lennon, Manteo, N. C. Certificate No. 342. 

Passenger: Manteo to Elizabeth City via Nags Head, Kill Devil 
Hill and Currituck Bridge, 345, 344, 34; Manteo to Wanchese, 345. 

Freight: Manteo to Norfolk, 345, 344, 34 via Kill Devil Hill, 
Sligo and Moyock; Manteo to Wanchese, 345; Manteo to Stumpy 
Point via Mann's Harbor; Sligo to Elizabeth City, Route 34. 

Virginia Stage Lines, Incorporated, Charlottesville, Va. Certificate 
No. 409. 

Passenger: N. C. State Line to Yanceyville on Route 14 and 
from Yanceyville to Haw River on Route 62 and on the north side 
of the railroad track on Route 10 to Burlington. Durham and the 
N. C.-Va. State Line via Roxboro, Highway No. 55; Roxboro to the 
N. C.-Va. State Line via Semore, Highways Nos. 57 and 14; Also 
Highway No. 158 via Leasburg between Roxboro and Yanceyville. 

Ward Transfer Company, Wilmington, N. C. Certificate No. 455. 

Freight: Wilmington to Durham via Clinton, U. S. Route No. 
421; Clinton to Dunn via U. S. Route No. 701 to Newton Grove 
and No. 55 to Dunn; Dunn to Erwin via U. S. Route No. 421; Erwin 
to Raleigh via No. 55 and U. S. 15A; Raleigh to Durham via U. S. 
No. 15A, N. C. No. 9 and U. S. No. 70. No freight to be taken on 
at Raleigh to be delivered in Durham nor any freight in Durham 
to be delivered in Raleigh. 

Washington-Oriental Bus Line, O. S. Flanagan, Owner, Washington, 
N. C. Certificate No. 434. 

Passenger: Washington and Oriental Route No. 33 from Wash- 
ington to Aurora; Route No. 306 from Aurora to Grantsboro and 
Route No. 302 from Grantsboro to Oriental. 

Wilmington-Brunswick and Southern Railroad Company, H. M. 
Shannon, Manager, Southport, N. C. Certificate No. 316. 

Passenger: Southport, over Route 201, nine miles to Wilse 
Smith's; thence over county road to Bolivia; thence on Route 201 
to the Brunswick River; thence over Route 20 to Wilmington. 

Freight: Southport over Route 30 to intersection of Route 303; 
thence over 303 to the intersection of Route 30 south of Town Creek; 
thence over Route 30 to the intersection of Route 20 at Navassa; 
thence to Wilmington over Route 20. 

Winston-Elkin Motor Express, V. L. Renegar, Elkin, N. C. Certificate 
No. 234. 

Freight: Winston-Salem to Elkin, 60, 26 via Yadkinville, Boon- 
ville and Brooks Cross Roads; Winston-Salem to Elkin via East 
Bend and Boonville, 60, 67, 26; Elkin to Roaring Gap, 26, for sea- 
sonal service. 



92 N. C. Utilities Commission 

E. O. WooDiE Transportation Company, North Wilkesboro, N. C. 
Certificate No. 378. 

Passenger: Between Shelby and Winston-Salem via Taylorsville; 
Morganton, Lenoir, Kings Creek and North Wilkesboro, Highway 
No. 18, Roaring River, Elkin, Boonville and East Bend, Highways 
Nos. 268 and 67. Statesville and Lenoir via Taylorsville, Highway 
No, 90; Taylorsville and Wilkesboro via Moravian Falls, Highway 
No. 16, Elkin and West Jefferson via Sparta and Scottville via High- 
ways Nos. 221 and 21. 

Yates, C. B., North Wilkesboro, N. C. Certificate No. 420. 

Freight: North Wilkesboro and Boone, Route 60; thence over 
Route 221 to West Jefferson and Jefferson; thence over Route 16 
to North Wilkesboro making daily round trips. 

INTERSTATE CARRIERS FOR 1938 
Name and Address Interstate Certificate Number 

A. & E. Truck Line, Battleboro, N. C No. 150 

Akers & Hudson Motor Lines, Inc., Gastonia, N. C No. 100 

American Storage Company, 2801 Georgia Avenue, N.W. Wash- 
ington, D. C No. 135 

Anderson, J. M. Trading as Anderson Transfer Company, Mur- 

freesboro, N. C No. 96 

Atlantic States Motor Lines, High Point, N. C No. 70 

J. H. Axley Truck Lines, Murphy, N. C No. 102 

E. L. Barnes and Fred Ricks t/a Barnes and Ricks, Conway, 

N. C No. 84 

Barnwell Brothers, Inc., R. W. Barnwell, President, Burlington, 

N. C No. 1 

Bass Bonded Trucks, Inc., Tarboro, N. C No. 116 

Beale, Walter H., Potecasi, N. C No. 75 

Blanchard Storage Company, Inc., 320 Broad Street, Rochester, 

N. Y No. 103 

Blow, Raleigh H., Murfreesboro, N. C No. 71 

Bondurant Motor Lines and/or Textile Truckers, Inc., Mount 

Airy, N. C No. 156 

Bottoms Truck Lines, L. H., L. H. Bottoms, Owner, High Point, 

N. C No. 25 

Brinkerhoff, Henry E., 1437 Regina Street, Harrisburg, Pa No. 137 

Brown, J. M., d/b/a. Brown Transfer & Storage, Rome, Ga No. 104 

Burgess, Roger W., Conway, N. C No. 85 

Burton Lines, Inc., Reidsville, N. C No. 72 

Central Storage & Van Company, 1101-13 Jackson Street, 

Omaha, Nebraska No. 145 

Central Van & Storage Company, 521 Eighth' Street, South, 

Nashville, Tenn No. 127 

Clay's Transfer Company, Rocky Mount, N. C No. 151 

Jack Cole Company, Inc., 2315 5th Avenue, South, Birming- 
ham, Ala No. 90 

Cooke, Charlie S., Murfreesboro, N. C No. 66 



Decisions and Adjustments of Complaints 93 

B. G. Costich & Sons, Inc., 271 Hayward Avenue, Rochester, 

N. Y No. 98 

G. L. Cox Motor Lines, 802 Morehead Avenue, Greensboro, 

N. C No. 86 

Craig & Jennings, Inc., Lenoir, N. C No. 123 

Curies, William L., 2033 Nichols Ave., S.E., Washington, D. C.No. 142 
R. L. Dance Trucking Company, 531 West 12th Street, Coving- 
ton, Ky No. 133 

J. T. Dailey Company, Greensboro, N. C No. 107 

Dickson Transfer & Trucking Company, 24 N. High Street, 

Akron, Ohio No. 106 

A. Driemeier Storage & Moving Company, 3615 North 20th St., 

St. Louis, Mo No. 146 

Elders Transfer Company, Inc., Hickory, N. C No. 118 

Elizabeth City-Carolina Lines, Elizabeth City, N. C No. 64 

Evans Truck Line, John M. and Dock Due Evans, Nashville, 

N. C No. 117 

Forbes, D. J. d/b/a, Forbes Transfer Company, Wilson, N. C No. 97 

Gate City Transport Company, Inc., R. A. Smith, President, 

Greensboro, N. C No. 51 

Glosson Motor Lines, Bonlee, N. C No. 136 

Hardy, J. W., d/b/a. Hardy Transfer Company, Farmville, 

N. C No. 121 

Hennis Freight Lines, S. A. & H. L. Hennis, Owners, Cana, Va...No. 93 

Hill, Albert E., Murfreesboro, N. C No. 67 

Hill, James W., Murfreesboro, N. C No. 68 

Hipp & Cress, Salisbury, N. C No. 101 

Hollingsworth, T. C, d/b/a, T. H. Motor Lines, Norfolk, Va No. 91 

Horton Motor Lines, Inc., H. D. Horton, President, 700 South 

Cedar Street, Charlotte, N. C No. 5 

Howard Hall Company, Inc., 2809 Second Ave., South, Bir- 
mingham, Ala No. 92 

Coggins, J. M. and Clarence, d/b/a, Interstate Transfer, High 

Point, N. C No. 65 

Johnson, M. B., Pendleton, N. C No. 79 

Jones Transfer Company, Inc., Salisbury, N. C No. 140 

D. D. Jones Transfer & Warehouse Co., Inc.,, Norfolk, Va No. 122 

Joyner, Walter M., Woodland, N. C No. 76 

Lassiter, J. W., Conway, N. C No. 120 

Lenker, Karl, d/b/a, Dixie Transfer, 305 N. 18th Street, Rich- 
mond, Va No. 152 

Lewis & Holmes Motor Freight Line, D. M. Lewis and N. P. 

Holmes, Box 206, High Point, N. C No. 8 

Madison Transfer Company, John D. Blair, Jr., Owner, Rich- 
mond, Va No. 27 

Mclntyre, J. C, d/b/a, Textile Motor Freight, Laurinburg, 

N. C No. 115 

Melville Storage Company, 23 North 52nd Street, Philadelphia, 

Pa No. 125 



94 N. C. Utilities Commission 

Mercer, Vernon T., Ashe Court, Lancaster Pike, Coatesville, 

Pa No. 138 

Miller Motor Express, Charlotte, N. C No. 45 

Miller, J. Lester, Concord, N. C No. 54 

R. V. Miller Trucking Company, Greensboro, N. C No. 81 

William A. Morris, Inc., West New Brighton, Staten Island, 

N. Y No. 132 

Murphy, Thomas L., d/b/a, Murphy's Storage Warehouse, 200 

Middle Neck Road, Great Neck, N. Y No. 128 

National Convoy and Trucking Company, 918 Oaklawn Ave- 
nue, Charlotte, N. C No. 56 

Nazarian, John, 50 Prentiss St., Watertown, Mass No. 134 

New South Express Lines, Inc., Columbia, S. C No. 57 

N. B. & C. Motor Lines, Inc., Washington, N. C No. 39 

Norfolk Southern Bus Corporation, Norfolk, Va No. 62 

Pan American Bus Lines, Paul R. Sheahan, President, Char- 
lotte, N. C No. 59 

Philadelphia-Detroit Lines, Inc., Jacksonville, Fla No. 131 

W. S. Pinnix Transfer Company, Winston-Salem, N. C No. 124 

Porter, Julian Patrick, Severn, N. C No. 88 

Porter, William Barham, Severn, N. C No. 89 

Propst, J. W. Jr., Inc., Concord, N. C No. 2 

R. C. Motor Lines, Inc., 112 Stewart St., Jacksonville, Fla No. 113 

Reliable Transport, Inc., Box 2323, Raleigh, N. C No. 141 

Ricks Tours, Greenville, N. C No. 99 

C. A. Ross, Agent, Inc., Gastonia, N. C No. 95 

Rutherford Freight Lines, E. J. Rutherford, Sec. & Treas., 

Bristol, Tenn.-Va No. 41 

S. & W. Motor Lines, G. H. Sharp & C. E. Williams, Greens- 
boro, N. C No. 153 

Salisbury Transfer Company, Salisbury, N. C No. 139 

Shaw Transfer Company, Salisbury, N. C No. Ill 

Jack Shuford Trucking, Mrs. Frances M. Shuford, Owner, Lin- 

colnton, N. C No. 110 

Smith, Mr. and Mrs. G. W. Smith, Wilson, N. C No. 105 

Smith's Transfer Company, Lenoir, N. C No. 60 

Southern Transfer & Storage Co., Saint Petersburg, Fla..... No. 126 

Steinla Motor & Transportation Co., Inc., or Arrow Motor Lines 
or Ervin Steinla, 131-33 South Mechanic St., Cumberland, 

Maryland No. 114 

W. M. Stephenson & Sons, d/b/a, W. M. Stephenson, Pendleton, 

N. C No. 149 

Tayloe & Evans, Inc., Ahoskie, N. C No. 78 

W. T. Taylor, Jr., Como, N. C No. 147 

Tentile Transportation, Inc., Burlington, N. C No. 108 

Textile Warehouse Company, 511 Rhett St., Greenville, S. C.No. 129 

The Mason & Dixon Lines, Inc., Kingsport, Tenn No. 83 

Transportation, Inc., Charlotte, N. C No. 112 

Turner Motor Lines, Inc., Danville, N. C No. 82 

Turner's Transfer, 1719 West Lee, Greensboro, N. C No. 144 



Decisions and Adjustments of Complaints 95 

Union Storage & Warehouse Co., Inc., Charlotte, N. C No. 119 

Vick Truck Line, Woodland, N. C No. 74 

Ward Transfer Company, Wilmington, N. C No. 109 

Warren Transfer Company, J. C. Warren, President, Charlotte, 

N. C No. 7 

Whitehead, Ralph L., Hobgood, N. C No. 77 

RATES, CHARGES, RULES AND REGULATIONS 
(Exclusive of Reductions) 

Classification: Application of American Trucking Associations, Inc., 
through Agent C. F. Jackson to apply National Motor Freight Classi- 
fication No. 3, NCUC No. 4 and Supplements 2 through 6, except item 
6y2, minimum charge, Supplement No. 2. Approved. Docket No. 1232. 

Classification, increases in ratings, charges, rules and regulations, 
National Motor Freight Classification No. 2, M.F.-ICC No. 4, NCUC 
No. 3, and supplements thereto, except certain specific items on which 
formal hearings were held, pended elsewhere herein under appro- 
priate heading: Application of Agent C. F. Jackson. Approved. Docket 
914. 

Express: Application of Atlantic Greyhound Corporation for ap- 
proval of Local and Interdivisional Express Tariff No. 24, M.E.-NCUC 
No. 3, naming rules, regulations, and rates on express. Granted. 
Docket 1153. 

Fares: Application of Atlantic Bus Traffic Association to revise 
fares for account of Leaksville-Danville Bus Line. Approved. Docket 
1153. 

Fares, Bus: Application of Atlantic Greyhound Corporation to 
establish special service charges. Approved. Docket 1153. 

Fares, Commutation: Application of Atlantic Greyhound Corpora- 
tion to provide commutation fares and rules and regulations govern- 
ing same. Approved. Docket 1153. 

Fares, Bus: Application of Carolina Coach Company to correct 
maladjustment in certain fares. Granted. Docket 1153. 

Fares, Bus: Application of Seashore Transportation Company to 
increase fare between Beaufort and Jacksonville 10 cents and between 
Morehead City and Jacksonville, 5 cents. Approved. Docket 1153. 

Mileage Log Tariff No. 16, M.P.-NCUS, No. 7, M.E.-NCUC, No. 2: 
Application of Atlantic Greyhound Corporation for approval. Granted. 
Docket 1153. 

Petroleum Products: Application of Motor Carriers Traffic Asso- 
ciation to cancel NCUC No. 5. Approved. Docket 116. 

Claims 
Motor Transit Company: Application to refund to the Gulf Oil 
Corporation $1.71 on shipment of oil from Raleigh to Burlington in 
May, 1937. Granted. Docket 1074. 



96 N. C. Utilities Commission 

REVISION OF MOTOR VEHICLE CARRIER RATINGS ON COTTON 
WARP, WICKING, N. O. I., COTTON YARN, N. O. I., AND JUTE 
YARN AS DESCRIBED IN SUPPLEMENT NO. 8 TO NATIONAL 
MOTOR FREIGHT CLASSIFICATION NO. 2, C. F. JACKSON, 
AGENT. 

Order 

Appearances: 

R. S. Cooper, Greensboro, N. C, for petitioners; 
L. O. Kimberly, Jr., for North Carolina Cotton Manufacturers 
Association, Atlanta, Ga., for protestants. 

On behalf of motor vehicle carriers operating intrastate within 
North Carolina, C. F. Jackson, Agent, National Motor Freight Classifi- 
cation, on July 7, 1937, petitioned for authority to increase ratings from 
5th class to 4th class on Cotton Warp, Wicking, N. O. I., Cotton Yarn, 
N. O. I., and Jute Yarn. The issues were heard in the Commission's 
courtroom on Septerhber 16, 1937. 

This petition was filed following action of the rail carriers to publish 
similar increases which matter was heard on September 15, 1937. 
Petitioners' witness, at the beginning, went on record as adopting the 
testimony offered by the rail carriers the day before. 

It was stated that there is no knowledge of any jute yarn movement 
and, there being no interest manifested in the proposed increase 
thereon, this commodity will not be further discussed. There are, how- 
ever, movements of cotton yarn and cotton warp, now published at 
45% of first-class, and inconsequential movements of wicking, pub- 
lished as 50% of first-class, in the Exceptions contained in N. C. U. C. 
No. 4, North Carolina Intrastate tariff. 45% of first-class is equivalent 
to 5th class in the classification proper. 50% of first-class is five per- 
centage points higher than 5th class. 

While the franchise motor vehicle carriers, parties to Agent R. S. 
Cooper's N. C. U. C. No. 4, publish a mileage scale of commodity rates 
on cotton and knitting factory products, including cotton yarn, similar 
to that published by their rail competitors, and exceptions to the classi- 
fication carrying certain percentages of first-class rates identical to 
those filed also by the rail carriers, such rates alternate, giving shippers 
the benefit of the lowest possible charges on their movements by 
highway. 

With the exception of approximately four motor vehicle carriers 
holding certificates from this Commission to operate as common car- 
riers, the aforementioned tariff publishes rates between practically 
every point in North Carolina reached by the other lines and the basis 
of 45 % of first-class on the cotton yarn and warp, and 50 % of first-class 
on wicking, will continue to apply even though 4th class rating may be 
authorized in the classification proper. In order that there may be 
uniformity in, and through joint rates, charges, practices, etc., between 
all North Carolina points served by franchise carriers, the lines not now 
participating in Agent Cooper's N. C. U. C. No. 4 should become parties 
thereto. 



Decisions and Adjustments of Complaints 97 

For the time being and until motor carrier rates are stabilized, peti- 
tioners request that they be treated in the same manner as the rail 
lines. Such a consideration will place them on a competitive basis with 
the latter. 

There are 234 mills in North Carolina manufacturing and shipping 
cotton yarn, and this State is the most important shipper in the South 
from this standpoint. Protestants strenuously objected to the proposed 
increase for the reason that the Interstate Commerce Commission 
recently found 5th class rating to be reasonable and, also for fear that 
by increasing the rating to 4th class both rail and truck lines would 
eventually put cotton yarn on the same basis as cotton piece goods. 
There is, possibly, merit to their contention but in view of the fact 
North Carolina franchise carriers have adopted identical class rates and 
practically the same commodity rates as those filed by rail carriers, 
and that the proposed 4th class rating has been allowed to become 
effective on interstate traffic without suspension, that point will not be 
considered at this time. 

In Docket No. 898, application of North Carolina rail carriers for 
similar increases, an order has, on this day been issued authorizing the 
same increases and as the record in that case was considered a part of 
this record, there being actually no change in the rates as such, it is my 
opinion that the proposed increases for account of highway carriers 
should likewise be approved, with the understanding, of course, that 
it is not to be construed as authorizing any increases whatever in the 
ratings presently published in the Exceptions to National Motor Freight 
Classification No. 2, N. C. U. C. No. 3, now embraced in Agent R. S. 
Cooper's North Carolina Intrastate Tariff, N. C. U. C. No. 4, except upon 
permission from this Commission. 

It is therefore ordered. That application of Agent C. F. Jackson 
for authority to revise classification ratings on Cotton Warp, Wicking, 
N. O. I., Cotton Yarn, N. O. I., and Jute Yarn as described in Supple- 
ment No. 8 to National Motor Freight Classification No. 2, N. C. U. C. 
No. 3, be and the same is hereby, approved, effective on not less than 
fifteen days' notice to the public and this Commission. 

This 10th day of December, 1937. 

Stanley Winborne, 

By order of the Commissioner: Commissioner. 

R. O. Self, Chief Clerk. 

Docket No. 914. 

APPLICATION OF MOTOR VEHICLE CARRIERS TO INCREASE 

RATING FROM 1 1/2 XI TO 4X1 CLASS ON NEON ELECTRIC 

SIGNS, IN BOXES OR CRATES. 

Appearance: 

Order 

R. S. Koonce, for Motor Transit Company and National Motor 

Freight Classification, C. F. Jackson, Agent. 

Hearing on the above application, dated August 3, 1937, filed by 

Agent C. F. Jackson, National Motor Freight Classification, Washington, 

D. C, was heard in the office of the Commission on December 15, 1937. 



98 N. C. Utilities Commission 

Prior to September 10, 1937, the effective date of Supplement No. 9 
to National Motor Freight Classification No. 2, N. C. U. C. No. 3, in- 
creasing ratings on Neon Electric Signs from 11/2x1 to 4x1 class, protest 
was filed by the Charlotte Shippers and Manufacturers Association, 
Inc., Charlotte, N. C, through its Traffic Manager, W. S. Creighton. 
Subsequently, Chicago Sign Sales Corporation of that city, through 
its President, H. B. Diamond, registered vigorous opposition to the pro- 
posal. Neither of these protestants appeared at the hearing. The latter 
indicated, however, that as long as the proposed increase applies only 
to the motor freight lines it would affect that company but little due 
to the fact that it very seldom uses motor freight lines for transporting 
neon signs. Nevertheless, it is contended, the principle involved is all 
wrong; that the neon sign industry is being taxed because of the failure 
of the motor lines to be diligent in observing that all merchandise 
accepted for transportation be properly crated. 

Relative to containers, this concern advised that whenever a neon 
tube is accepted for transportation in a concealed carton, the transpor- 
tation company also accepts a hazard which is not protected by any 
classification. In part, we are advised as follows: 

"A neon tube should never be packed in a corrugated box; a 
neon sign should never be closed up, but all such shipments should 
be made open, properly covered with poultry wire netting, suffi- 
ciently spaced away from the end or the nearest point of contact 
to the neon tube, and if this is observed, a remarkable change will 
be shown in the percentage of breakage." 

This company ships via express companies in excess of 200 pieces 
per month and it is doubtful whether the percentage of breakage 
exceeds two per cent. 

Reference is also made to various unlawful methods used by some 
in collecting claims by which transportation lines are the victims. It is 
suggested that if the manner in which these neon tubes and signs should 
be properly packed is publicized, approximately 90 % of the breakages 
and 100% of all fraudulent claims would be eliminated. 

In its protest against the proposed increase, the Chicago Sign Sales 
Corporation expressed regret that it failed to oppose same when 
docketed for public hearing by the National Motor Classification Board. 

At the hearing applicant's witness testified that this proposal was 
docketed for public hearing at Atlanta, Ga., on June 10, 1937; Wash- 
ington, D. C, on June 15, 1937, and Chicago, Illinois on June 21, 1937, 
at which no protests or objections were submitted against the increased 
rating. Conversely, numerous supporting statements were placed in the 
record at those hearings upon which the National Classification Board 
predicated the increased now proposed on North Carolina intrastate 
shipments. The new rating took effect September 10, 1937, on inter- 
state shipments, against which, we are advised, no protests or petitions 
for suspension were filed with the Interstate Commerce Commission. 

In 1929 there were approximately 600 manufacturers of Neon 
Signs in the United States. In 1937 the number had grown to more 
than 4,000 and the industry is generally thought to be continuing its 
expansion. This Commission has knowledge of but one Neon sign 



Decisions and Adjustments of Complaints 99 

manufacturer in North Carolina. The rapid growth of this industry 
has forced manufacturers to unduly reduce costs, and in many cases, 
it was testified, reduction has taken the form of manufacturing signs 
from cheaper, less substantial material, less thorough construction 
methods, weaker structural designs and poorer packing protection. 
While The Chicago Sign Sales Corporation of Charlotte was not repre- 
sented at the hearing, we can not believe that these methods or prac- 
tices have been adopted by it, especially so since it has offered sugges- 
tions which, in its opinion, would amount to an improvement rather 
than a retrogression, and which, we have every reason to believe, is 
cooperating in every possible way to deliver these signs at destination 
with a minimum amount of damage. Applicant states that improve- 
ments in packing methods have not developed apace, but, rather, have 
often stepped backward forcing increased hazards upon the carriers 
handling this traffic. 

The Neon sign industry is primarily a "made-to-order" business. 
The bulk of signs are manufactured on special orders to suit special 
uses. Average costs are difficult to determine and no usable figures are 
available. 

The fact that most Neon signs are made to order means that when 
breakages occurs it is seldom possible to have repairs made at the point 
of destination, but the sign must be returned to the manufacturer for 
repair. This characteristic has the effect of increasing the amounts of 
claims for damage, and each reshipment increases the hazard of further 
damage. Applicant's Exhibit No. 16, reproducing a letter dated March 
5, 1937, from one of its members, reveals that its experience with Neon 
signs has been "very sad"; that it is practically impossible to transport 
them without damage. (This is substantiated by many others who have 
likewise written letters to applicant). On February 12, the member 
continues, it received a sign packed as near perfect as possible, sus- 
pended on rubber bands and chicken wire, the crating being covered 
with stout cardboard and chicken wire over the entire packing, but on 
arrival it was found that one letter was broken. The sign was returned 
for repair and redelivered to the carrier. Again is was found to be 
broken. "If this keeps up we will be hauling this Neon sign from now 
on," wrote the member. This same operator advised that it received a 
large sign, C.O.D. Delivery was tendered to consignee but was refused 
because of insufficient funds with which to pay the charges. The truck 
continued its run and on its return was offered to consignee and again 
it was refused for the reason given before. Up to the second tender 
this operator was "lucky enough to handle the sign without damage. 
However, upon returning the sign, we found that it had suffered dam- 
age and it was necessary for us to pay a claim more than double the 
transportation charges to get the sign fixed in usable condition." 

Furthermore, it is claimed, there is little or no salvage value in the 
damaged signs. Since they are generally "tailor-made," and bear sub- 
jects pertaining only to the original purchaser's business, salvage is 
rarely salable to any parties other than the original consignees. 

Applicant states that due to the delicate nature of Neon sign glass 
tubing, elaborate packing methods have been developed. Generally, 



100 N. C. Utilities Commission 

they take a form which increases bulk of shipments and reduces the 
weight per cubic foot as compared to similar mieasurements of unpacked 
signs. Signs of this class are frequently of irregular shape and have 
protruding hanging figures attached. These characteristics have the 
effect of creating an unduly large usage of loadable space in relation 
to the overall sizes of their packages and as compared to the space 
ordinarily employed in shipping other commodities which have more 
regular shapes and practicality of loading. 

These signs, according to the record, cannot be loaded safely on 
top of other freight; other freight cannot be loaded on top of them; 
nor can other freight be loaded against packages containing Neon 
signs. The extreme delicacy of the glass tubing is responsible for these 
facts. In the hope of eliminating or reducing stresses or burdens which 
might twist or otherwise distort the tubing, carriers had to resort to 
these methods. Applicant has no knowledge of other commodities 
which are so extremely delicate as to require such handling. 

Twisting, bending or jolting will cause breakage of the glass tubes 
which are brittle and bent in delicate shapes making them particularly 
vulnerable to any shock which may occur in transportation. Mere 
cracking of the glass tubes will permit the gas to escape therefrom 
and the tubes must be replaced by the manufacturer. Shipments fre- 
quently arrive devoid of any evidence of having received rough hand- 
ling in transit but when unpacked they were found to have been 
damaged. Practically all claims filed cover concealed damage and as 
this subject is familiar to manufacturers, shippers and carriers alike, 
discussion of it is unnecessary. 

Applicant's Exhibit No. 1 sets forth computation on 41 claims 
reported by various carriers. Summary of this exhibit indicates that 
the general average of claims represented thereby amounted to $3.63 
per 100 pounds of Neon signs handled, whereas the revenue derived 
from the same shipments amounted to only $1.35 per 100 pounds. 
Therefore, the carriers were obliged to pay out in claims nearly three 
times the amount of their gross revenue collected, in addition to pro- 
viding specialized service, submitting to undue usage of their truck 
capacities; and bearing the pecuniary losses, damage to good will, and 
unpleasantries attached to settlement of concealed damage claims. It 
is contended that the majority of shipments of Neon signs handled by 
motor carriers are damaged for which c'aims are filed. The lowest on 
record is that of one carrier reporting 33% are damaged. The Motor 
Transit Company, only North Carolina carrier appearing and testifying 
in this proceeding, states that approximately 75% of its shipments are 
covered by claims. There is no information available or, at least, none 
offered in the record to show the number of Neon signs moving in 
North Carolina intrastate commerce, the percentage of which were 
damaged and covered by claims, or the amount of claims paid thereon 
compared with revenues accruing therefrom. 

Twenty-five of the forty-one shipments on which claims were filed 
covered by Exhibit No. 1 moved in accordance with improved packing 
specifications hereinbefore discussed. In connection with these twenty- 
five shipments, claims amounted to $3.39 per 100 pounds and revenue 



Decisions and Adjustments of Complaints 101 

99 cents per 100 pounds. This represents a decrease in the amount of 
claims per 100 pounds of only 7%. Applicant's study indicates that 
the improvements in packing specifications have not been sufficient to 
guard against the hazards incurred in connection with the transporta- 
tion of Neon signs by motor carriers. 

It has been said that the claim record in connection with shipments 
moving by Railway Express Agency has not been such as to indicate 
that the proposed increase in truck rating, amounting to 166%, is justi- 
fied. It is submitted by applicant that the movement of these signs by 
motor truck entails considerations not present in the case of express 
transportation. Necessarily trucks are compelled to make sudden stops 
and are subject to whatever jolts and bumps they may encounter by 
reason of highway construction, weather and other conditions beyond 
their control. One such jolt or jar may be sufficient to cause breakage 
involving many times the amount of gross transportation charges. In 
the case of most freight such considerations do not enter into claim 
records, but the extreme delicacy of Neon glass tubing is such that 
these factors do present a hazard and, it is argued, charges of motor 
carriers must necessarily be relatively higher to absorb claim losses 
and leave some possibility of a compensating revenue. This seems to 
be substantiated by many reports from applicant's members which are 
made a part of the record in this case. 

It appears that relatively light shipments of signs frequently occupy 
entire truck units. Whereas in the railroad industry costs of per freight 
unit or per car become less with the addition of new units or new cars, 
the same cannot be said generally of motor carriers. Motor carriers' 
costs generally increase in direct proportion to amount of space occu- 
pied by freight that is tendered. Therefore, it is stressed that railroad 
and express rates are not necessarily proper yard sticks by which to 
measure motor ratings on this class of traffic. This, in our opinion, is 
not considered by motor carriers in increasing ratings to correspond 
with ratings of rail carriers where the latter have been increased from 
time to time. Here, where such ratings are published by rail carriers 
higher than those filed by applicant, the latter considers the rail ratings 
yard sticks by which motor carrier ratings should be measured. 

Since April 1, 1936, Agent W. M. Miller's Tariff No. 4, M.F. I.C.C. 
No. 4, has provided 4 times 1st class rating on interstate shipments of 
Neon Electric Signs. Some carriers, considering the character and fra- 
gility of these signs, claims on and service to be rendered in connection 
with their transportation, have provided rating as high as 10 times 
first-class. 

Applicant states that efforts are being made to improve the packing 
methods so as to overcome the high rate of damage claims, and assures 
that as soon as a method is developed which will produce this result, 
the National Classification Board will welcome presentation for full 
and careful consideration and handling under its regular docket pro- 
cedure of a request for revision of ratings on shipments in conformity 
with such improved packing standards. In the event of such revisions 
through docket procedure, shippers taking proper precautions will 
receive the benefit of lower claim ratios through possible changes in 



102 N. C. Utilities Commission 

rating upon a showing that actual claim reduction may be expected. 
However, it is the belief of applicant that to date a protective method 
has not been developed that would justify such reductions. 

It is contended that even under 4 times first-class rating much of 
the traffic is not profitable and there is a great deal of dissatisfaction 
among both shippers and carriers. A lower rating would be far more 
satisfactory to all concerned if claims could be held within a reasonable 
limit and stowing conditions improved. 

In the absence of information in the record dealing with the intra- 
state transportation of Neon signs by motor carriers and the failure of 
those opposing the application by letter to appear and offer evidence in 
support of their position, the facts before us manifestly justify the pro- 
posed increase. An advance of nearly 20 % in the rating on these signs 
is surprising to say the least, but it appears that the proposed rating 
was published on interstate traffic, without suspension, or even request 
for suspension, and that 4 times Ist-class now applies throughout 
Eastern and Southern territories on interstate traffic. While it is con- 
sidered that this rating is rather high it is our opinion that the record 
justifies it. We will, however, authorize the application without preju- 
dice to the reopening of the proceedings at a later date for the purpose 
of ascertaining what further developments have been made in packing 
and shipping the signs, the effect of said packing on claims, and to 
gather data covering transportation of these signs in North Carolina 
intrastate commerce together with the ratio of claims filed and paid 
to the freight revenue thereon. 

While the letter referred to received from Chicago Sign Sales 
Corporation is not competent evidence of the things stated therein, 
yet, in view of the conclusion reached in this order, the Commission, 
desiring a full discussion of the issues involved, went beyond the 
bounds of rules of evidence in order to present fully all the contentions 
that had been suggested to it. The consideration of this letter, however, 
must not be taken as a precedent to be followed hereafter and could not 
legally be used upon which to base a conclusion different from the one 
herein reached. 

It is therefore ordered, That Agent C. F. Jackson's application 
dated August 3, 1937, for authority to increase rating on Neon Signs 
from 11/2x1 class to 4x1 class, be, and the same is hereby, approved. 

It is further ordered, That the rating on Neon Signs herein ap- 
proved shall not be published on less than fifteen (15) days' notice to 
the public and this Commission. 

This 9th day of February, 1938. 

Stanley Winborne, 

Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 914. 



Decisions and Adjustments of Complaints 103 

APPLICATION OF ATLANTIC GREYHOUND CORPORATION FOR 
FRANCHISE FROM RALEIGH TO WELDON BY FRANKLINTON, 
LOUISBURG, HENDERSON AND ROANOKE RAPIDS: AMEND- 
ED AT HEARING TO INCLUDE ONLY FRANKLINTON, HIGH- 
WAY 56, TO LOUISBURG; AND HIGHWAY 39, LOUISBURG TO 
HENDERSON. 

Order 
This cause arises upon the application of the Atlantic Greyhound 
Corporation; and being heard on the 13th day of May, 1937, at which 
time the applicant, through Attorney I. M. Bailey, filed motion for 
modification of the application, asking that no franchise be granted to 
operate from Norlina to Roanoke Rapids, Rosemary and Weldon, and 
return to Norlina, but that franchise be granted to operate from Ral- 
eigh by way of Franklinton and Louisburg to Henderson through the 
diversion of schedules now operated by the applicant direct from 
Raleigh to Henderson over U. S. Highway No. 1. 

It further appearing that no objection was entered at the hearing to 
such motion but that the Seaboard Airline Railway requested, and it 
was agreed, that the Commissioner will notify the said Seaboard Air- 
line Railway of any applications made by the petitioner for additional 
intrastate schedules, or for the diversion of more than two schedules 
daily from Highway No. 1, over Highways Nos. 56 and 39, between 
Franklinton and Henderson via Louisburg. 

It is now, therefore, ordered that motion of the applicant be 
allowed; and it is further ordered that franchise certificate No. 429 
be amended so as to include the operation of schedules by the applicant 
over Highway No. 56 from Franklinton to Louisburg, and over High- 
way No. 39 from Louisburg to Henderson, and that the applicant is 
hereby authorized to divert one schedule each way daily from High- 
way No. 1, via Louisburg, over the routes herein stated. 

It is further ordered that when future applications are made for 
additional intrastate schedules, or for the diversion of additional sched- 
ules, via Louisburg, the Seaboard Airline Railway be notified. 

It is further ordered that the applicant be given ten (10) days 
within which to notify the public of the discontinuance of the service 
being operated at the time of the hearing from Norlina to Weldon and 
return, said service to be discontinued on the 23rd day of May, 1937. 



This 14th day of May, 1937. 

By order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 895. 



Stanley Winborne, 

Utilities Commissioner. 



104 N. C. Utilities Commission 

APPLICATION S. & S. BUS LINE FOR FRANCHISE CERTIFICATE 
AUTHORIZING THE TRANSPORTATION OF PASSENGERS 
FROM SALISBURY TO SHELBY OVER U. S. HIGHWAY NO. 150. 
DOCKET 654. 

and 
APPLICATION ATLANTIC GREYHOUND LINES FOR FRANCHISE 
FROM MOCKSVILLE TO SALISBURY VIA COOLEEMEE, U. S. 
HIGHWAY NO. 601 TO JUNCTION WITH U. S. HIGHWAY NO. 
801, U. S. HIGHWAY NO. 801 TO COOLEEMEE, COUNTY HIGH- 
WAY-COOLEEMEE TO U. S. HIGHWAY NO. 601 AND TO SALIS- 
BURY OVER U. S. HIGHWAY NO. 601, DOCKET 891. 

and 
APPLICATION ATLANTIC GREYHOUND LINES FOR FRANCHISE 
FROM SALISBURY TO MOORESVILLE OVER N. C. HIGHWAY 
NO. 150. DOCKET 892. 

and 
APPLICATION QUEEN CITY COACH COMPANY, INC., FOR 
FRANCHISE FROM SHELBY TO SALISBURY VIA CHERRY- 
VILLE, LINCOLNTON AND MOORESVILLE OVER N. C. HIGH- 
WAY NO. 150. DOCKET 934. 

and 
APPLICATION E. O. WOODIE FOR FRANCHISE FROM TENN.-N. C. 
LINE ON NO. 16 TO SALISBURY VIA WARRENSVILLE, WEST 
JEFFERSON, JEFFERSON, SPARTA, ROARING GAP, ELKIN, 
BOONEVILLE, YADKINVILLE, MOCKSVILLE OVER HIGHWAYS 
NO. 16, NO. 221, NO. 21, NO. 67, AND NO. 601. DOCKET NO. 824. 

Order 
Dockets 654, 891, 892, 934, and 824. 
The above entitled causes came on for hearing before the under- 
signed Commissioner on Friday, February 26, 1937, in the Hearing 
Room of the Utilities Commission in the City of Raleigh. 

The following appearances were entered for the respective appli- 
cants : 

For S. & S. Bus Line: 

C. B. Holding, Attorney, Raleigh, N. C. 
For Atlantic Greyhound Lines: 

H. G. Hudson, Attorney, Winston-Salem, N. C. 

H. E. Olive, Attorney, Lexington, N. C. 

Pete Murphy, Attorney, Salisbury, N. C. 

I. M. Bailey, Attorney, Raleigh, N. C. 

For Queen City Coach Company, Inc.: 

L. P. McLendon, Attorney, Greensboro, N. C. 

Walter Woodson, Attorney, Salisbury, N. C. 

L. A. Love, General Manager, Queen City Coach Co., Char- 
lotte, N. C. 

K. J. Kindley, General Counsel, Queen City Coach Co., Char- 
lotte, N. C. 



Decisions and Adjustments of Complaints 105 

Carolina Coach Company: 

John Anderson, Attorney, Raleigh, N. C. 
E. O. Woodie: 

H. G. Hudson, Attorney, Winston-Salem, N. C. 
Notice as to the application in each case was duly published as 
required by law. 

When the S. & S. Bus Line was called for hearing upon the applica- 
tion asking for a franchise from Salisbury to Shelby over U. S. High- 
way 150, motion was made by Mr. C. B. Holding, Attorney, for a post- 
ponement of the hearing upon the ground that his associate, Mr. John 
G. Carpenter, of Gastonia, was unable to appear, due to other business. 
Objection was made to the postponement by all other parties inter- 
ested, for the reason that request for postponement was not made until 
the case was called for hearing; that the parties and their attorneys 
had come from various parts of this State and other States at great 
expense; that a postponement would necessitate further inconvenience 
and expense, and that the moving party was ably represented by Mr. 
Holding, and that there was no sound reason why the case should not 
proceed. 

After hearing all parties fully, the Commission denied the motion 
but stated that if it developed in the hearing that the S. & S. Bus Line 
were placed in any unfair disadvantage, that opportunity would later 
be granted it to offer further evidence. 

In view of the conclusions reached in this order, which will here- 
after appear, it would be useless to reopen the case to hear further from 
the S. & S. Bus Line and, in fact, it would be an injustice to said 
applicant to put it to the expense of appearing before the Commission 
in further support of its application. 

When the case of E. O. Woodie was called upon his application for 
franchise from the Tennessee line on Highway No. 16 to Salisbury via 
Warrensville, West Jefferson, Jefferson, Sparta, Roaring Gap, Elkin, 
Booneville, Yadkinville, and Mocksville over Highways No. 16, 
No. 221, No. 21, No. 67, and No. 601, amendment was offered to strike 
out from the application that part of the applied for franchise from 
West Jefferson to the Tennessee line, for the reason that since the 
passage of the Federal Motor Carrier Act, this Commission does not 
grant Certificates to State lines. A further amendment was offered 
asking that the franchise be extended from West Jefferson via Sparta 
and Elkin, where no service now exists. No objection was offered to 
either of said amendments and they were allowed. 

The Commission finds that the evidence adduced at the hearing 
fully established public convenience and necessity for the granting of 
the franchise to Mr. Woodie, as set forth in Docket 824 as amended, 
and there being no objection to the granting of said franchise, it was 
announced at the conclusion of the hearing that same would be granted. 

The Commission then proceeded to hear the application of the 
Atlantic Greyhound Lines for franchise from Mocksville to Salisbury 
via Cooleemee U. S. Highway 601 to Junction with U. S. Highway 
No. 801, U. S. Highway 801 to Cooleemee County Highway, Cooleemee 



106 N. C. Utilities Commission 

to U. S. Highway 601 to Salisbury over U. S. Highway 601, same being 
Docket 891. 

At the beginning of the hearing, the question arose as to whether 
the Atlantic Greyhound Lines now holds a franchise from Mocksville 
to Salisbury, with the exception of the digression from the main High- 
way into and back from Cooleemee, or whether said franchise had 
been forfeited for non-user. This Commission held that the Atlantic 
Greyhound Lines, by failure to operate over said route from Mocksville 
to Salisbury for a period of years, had forfeited its franchise, but this 
question now becomes academic in view of the findings of this Com- 
mission, hereinafter appearing. 

The Commission finds from all of the testimony that the Atlantic 
Greyhound Lines fully established public convenience and necessity 
for the operation of passenger motor bus service from Mocksville to 
Salisbury via Cooleemee over routes named in said application. 

The cases on the application of the Atlantic Greyhound Lines for a 
franchise from Salisbury to Mooresville over N. C. Highway No. 150, 
same being Docket 892, and the application of the Queen City Coach 
Co., Inc., for franchise from Salisbury to Shelby via Mooresville, 
Cherryville and Lincolnton, same being Docket 934, were by consent 
consolidated and heard together, the said two applications over-lapping 
from Salisbury to Mooresville. 

In support of the Atlantic Greyhound Lines' application for its 
franchise from Salisbury to Mooresville, testimony was offered show- 
ing that the Atlantic Greyhound Lines now operate from Winston- 
Salem, a line through Statesville on to Charlotte and beyond; that if 
it is granted the franchise in question, it would divert two schedules 
each way from its Statesville route, from Mocksville through Salisbury 
to Mooresville, then from Mooresville over its present route to Char- 
lotte; that said new schedules over the proposed route would give 
direct service from Winston-Salem to Salisbury and from Salisbury to 
Mooresville, Davidson College, and Charlotte; that it would also enable 
people between Mocksville and Salisbury to have direct service both 
to Winston-Salem and to Charlotte; that if the franchise from Salisbury 
to Mooresville is denied then it would be doubtful whether the opera- 
tion of the line from Mocksville to Salisbury would be remunerative. 
Many petitions were offered asking for this service and witnesses 
representing the Chamber of Commerce and other organizations testi- 
fied that said service was needed and it was approved and recom- 
mended by their respective organizations. 

The Queen City Coach Company, in support of its application for 
franchise between Shelby and Salisbury via Cherryville, Lincolnton 
and Mooresville, offered testimony showing that this particular route 
had no motor transportation facilities for passengers; that the service 
was much needed; that it would afford convenient transportation 
between said towns; that it would provide an outlet through its con- 
nections at Shelby, Mooresville and Salisbury with other transportation 
lines, both motor and rail, to various parts of the country. The testi- 
mony of the numerous witnesses as to the need for the service was 
corroborated and supported by letters and petitions. 



Decisions and Adjustments of Complaints 107 

From Mooresville to Salisbury is approximately 17 miles and it is 
between these places that the two applications over-lapped and the 
paramount issue before the Commission raised by the evidence was 
whether both Companies should be granted a franchise from Salisbury 
to Mooresville, and, if not both, which one? Nearly all of the testimony 
supported the contention of the Queen City Coach Company, Inc., that 
its service was needed from Shelby via Mooresville to Salisbury, and 
even the witnesses who testified in behalf of the Atlantic Greyhound 
Lines' application for franchise from Salisbury to Mooresville admitted 
that the service offered by the Queen City Coach Co. was desirable and 
would be advantageous to all points along the proposed route. It was 
also shown by a number of witnesses, outstanding among whom was 
the witness, Hon. Con C. Johnston, of Mooresville, who at the time of 
the hearing was a member of the House of Representatives, that the 
heaviest travel would be between Mooresville and Salisbury and that 
it was doubtful whether said travel would be sufficient to support two 
bus lines between said points and if the income between said points 
were divided between two bus lines, the profitableness of the entire 
operations proposed by the Queen City Coach Co. would be jeopardized. 
It was further contended and supported by testimony, that if the Queen 
City Coach Co. were given the sole franchise from Mooresville to 
Salisbury that connections could there be made with the Atlantic 
Greyhound Lines' proposed line from Salisbury to Mocksville and 
that while the public would suffer the inconvenience of changing from 
one line to another, this inconvenience would be more than off-set by 
the convenience afforded to the people from Shelby and other points 
by the Queen City Coach Company's proposed line, and that by the 
establishment of the Queen City's proposed line, the traveling public 
residing west of Mooresville could connect with the Atlantic Grey- 
hound Lines at Mooresville for points north and south. On the other 
hand, it was contended by the Atlantic Greyhound Lines that unless it 
could operate through from Mocksville to Mooresville that it could 
not give as efficient service to the public by shuttle bus from Mocksville 
into Salisbury. 

The Commission has been very much impressed with the testimony 
as to the convenience of the service proposed by the Greyhound Lines 
from Mocksville to Mooresville. Also it has been definitely convinced 
of the necessity for the service from Shelby to Salisbury via Moores- 
ville. Some arrangement has been sought by the Commission, in its 
deliberations upon the matter, whereby both services could be granted 
without doing violence to either. It has seriously considered restricting 
the service of the Atlantic Greyhound Lines from Salisbury to Moores- 
ville so that it could take on no passengers from Salisbury to Moores- 
ville and intermediate points, or from Mooresville to Salisbury and 
intermediate points. The Commission feels satisfied that the two 
services without restriction would not be justified and that the Queen 
City service should be granted without restriction. At first, it seemed 
that the closed door idea as to the Atlantic Greyhound Lines was the 
solution, but upon further deliberation and a mental review of similar 
cases where restricted service has been ordered by this Commission 



108 N. C. Utilities Commission 

and upon recalling the almost universal dissatisfaction resulting from 
same, both by reason of lack of observance of the restrictions and the 
irritation caused the public by being told when seeing a bus at a 
station destined to points to which they desired to go, that said service 
is not open to them, the Commission has finally reached the conclusion 
that there should be no over-lapping service between Salisbury and 
Mooresville. The Commission realizes by its refusal to allow the 
Greyhound Lines to run from Salisbury to Mooresville that the public 
may be slightly inconvenienced, especially those desiring to travel 
between Salisbury and points between Salisbury and Mocksville and 
points south of Mooresville, principally, to Davidson College. This 
inconvenience, however, the Commission believes will be more than 
off-set by the convenience which the Queen City Coach Company's 
line will provide all the way from Shelby into Salisbury and which 
line might be jeopardized by the over-lapping service proposed by the 
Atlantic Greyhound Co. 

The case presents no need for any service between Salisbury and 
Charlotte where probably there are better transportation facilities than 
in any section of the State, both by motor and rail. The only territory 
in question in this case is that between Mocksville and Mooresville, as 
presented by the Greyhound Lines' application and between Shelby 
and Salisbury, as presented by the Queen City Coach Company's 
application. 

Wherefore, it is ordered: 

1. That the application of the S. & S. Bus Line be and the same is 
hereby dismissed. 

2. That the application of E. O. Woodie, as amended, be and the 
same is hereby granted. 

3. That the application of the Atlantic Greyhound Lines for a 
franchise from Mocksville to Salisbury via Cooleemee be and the same 
is hereby granted. 

4. That the application of the Atlantic Greyhound Lines for fran- 
chise from Salisbury to Mooresville be and the same is hereby denied. 

5. That the application of the Queen City Coach Company for fran- 
chise from Shelby to Salisbury via Mooresville be and the same is 
hereby granted. 

This the 16th day of June, 1937. 

Stanley Winborne, 

Commissioner. 

Dockets Nos. 654, 891, 892, 934 and 824. 



Decisions and Adjustments of Complaints 109 

APPLICATION ATLANTIC GREYHOUND LINES FOR FRANCHISE 
FROM MOCKSVILLE TO SALISBURY VIA COOLEEMEE, OVER 
U. S. HIGHWAY NO. 601 TO JUNCTION WITH U. S. HIGHWAY 
NO. 801, U. S. HIGHWAY NO. 801 TO COOLEEMEE, COUNTY 
HIGHWAY— COOLEEMEE TO U. S. HIGHWAY NO. 601 AND TO 
SALISBURY OVER U. S. HIGHWAY NO. 601. DOCKET 891. 
and 

IN RE: APPLICATION QUEEN CITY COACH COMPANY, INC., FOR 
FRANCHISE FROM SHELBY TO SALISBURY VIA CHERRY- 
VILLE, LINCOLNTON AND MOORESVILLE OVER N. C. HIGH- 
WAY NO. 150. DOCKET 934. 

Supplemental Order 

Whereas on June 16, 1937, an order was issued in the above entitled 
causes directing the issuing of franchises to the Atlantic Greyhound 
Lines and to the Queen City Coach Company, respectively, over the 
routes set out in Dockets 891 and 934; and whereas in both cases the 
applicant desires to engage in interstate business in connection with its 
other lines which extend into other States; and whereas in order to 
engage in interstate business, it is necessary to obtain a Certificate of 
Convenience and Necessity from the Interstate Commerce Commission; 
and whereas it is uncertain as to when said Certificate of Convenience 
and Necessity will be granted by the Interstate Commerce Commission; 
and whereas under the laws of North Carolina if an operation for 
which franchise has been granted is not begun within thirty days from 
the issuing of said franchise, the franchise shall become automatically 
cancelled, it is now therefore 

Ordered that the franchise certificates heretofore authorized by 
this Commission on June 16, 1937, in Dockets 891 and 934 shall not be 
issued by this Commission until after the Interstate Commerce Com- 
mission has passed upon and entered an order directing the respective 
applicants in said cases carried by this Commission in said Docket 891 
and Docket 934, to engage in interstate business. 

This the 15th day of July, 1937. 

Stanley Winborne, 

Commissioner. 
Dockets Nos. 891 and 934. 

PETITION OF ATLANTIC GREYHOUND CORPORATION FOR 
AUTHORITY TO EFFECT THE ACQUISITION OF FRANCHISE 
CERTIFICATE HELD BY C. M. WIECKING, D.B.A. MOUNTAIN 
STAGE LINES, WITH HOME OFFICE AT HENDERSONVILLE, 
N. C. 

Order 
This cause arises upon the application of Atlantic Greyhound 
Corporation for authority to acquire all the rights, titles and interests 
conveyed by Franchise Certificate No. 381, issued by the North Carolina 
Utilities Commission to Mr. C. M. Wiecking, d/b/a Mountain Stage 
Lines. 



110 N. C. Utilities Commission 

The petitioner in this case through its predecessor, the Skyland 
Stages, Incorporated, entered into a lease agreement which was 
approved by this Commission on December 1st, 1932, which transferred 
to the Skyland Stages, Incorporated, and its successors and assigns the 
operation under Franchise Certificate No. 381, referred to above, the 
agreement, which was at that time approved by the Commission, 
carried with it an option to purchase the rights leased at that time. 
The lessee now deems it expedient to exercise the option and has 
presented to the Commissioner a proper bill of sale, dated December 
10th, 1937, and the Commissioner, taking into consideration the 
interest of the public in connection with the said sale, is of the opinion 
that public convenience and necessity will be greatly enhanced by the 
approval of same. 

Therefore, it is ordered that the petition be granted and that all 
the rights, titles, and interests now enjoyed by C. M. Wiecking, his 
heirs and assigns, d/b/a Mountain Stage Lines be, and the same is 
hereby transferred to the said petitioner, the Atlantic Greyhound 
Corporation, its successors and assigns, and that this transfer be 
effective as of the close of business on December 10th, 1937. 

And it is further ordered that the certificate now held by the 
Atlantic Greyhound Corporation, otherwise known as Certificate No. 
429, issued by the Utilities Commissioner of the State of North Caro- 
lina, under authority of Chapter 136, Public Laws of 1927, and 
amendments thereto, be and the same is hereby amended to include 
the rights transferred herein and more particularly referred to and 
described as between Asheville, N. C, and Brevard, N. C, via Hender- 
sonville, N. C, over U. S. Highway Nos. 25 and 64, formerly Highways 
Nos. 69 and 28. 

This the 16th day of December, 1937. 

By order of the Commissioner: 

Stanley Winborne, 
R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 8. 

APPLICATION OF ATLANTIC GREYHOUND CORPORATION FOR 
AUTHORITY TO REVISE PASSENGER FARES WITHIN NORTH 
CAROLINA. 

Order 
Appearances : 

I. M. Bailey and H. Peirce Brawner, for applicant. 
By application dated November 20, 1937, the Atlantic Greyhound 
Corporation, through its Traffic Manager, H. Peirce Brawner, seeks 
authority to revise North Carolina intrastate bus fares between points 
on the following divisions: 

Richmond-Raleigh 

Richmond-Durham 

Durham-Henderson 

Raleigh-Louisburg-Henderson 

Raleigh-Wilmington-N. C.-S. C. State Line 

Winston-Salem-Greensboro-N. C.-Va. State Line 



Decisions and Adjustments of Complaints 111 

There was no opposition to the proposal when heard by me on 
December 13, 1937. 

At the present time bus fares of applicant vary, no base being 
recognized or adopted in their publication. Very few fares between 
points in North Carolina exceed two cents per mile, the majority of 
which being less. It is not proposed to revise fares presently based on 
two cents or more per mile. 

Applicant was not in position to give its revenue per passenger 
mile as compared with some of the other carriers operating in this 
State, but the highest fare here proposed does not exceed 1.92 cents 
per mile, while the lowest involved is only 1.58 cents per mile. This 
compares with fares of other lines ranging from 1.78 cents between 
Durham and Raleigh, to 21/2 cents per mile between New Bern and 
Wilmington. 

Bus fares in Southeastern territory, the record shows, have been 
unduly depressed by virtue of the 1^/2 cents per mile published by the 
railroads which, on November 15, 1937, were increased to 2 cents per 
mile. Applicant contends that as a result of these depressed fares its 
southern division, in which lies the Winston-Salem, Greensboro, 
Reidsville and Winston-Salem, Stokesdale, Reidsville to the Virginia 
State Line service; and its East Coast Division, comprised of all other 
routes for which fares are here considered, have been unable to obtain 
adequate revenue per passenger mile, in relation with the remainder 
of the company. It is also contended that a reasonable relationship 
should be maintained between fares of the railroads and those of bus 
lines in intrastate travel. 

During the past several years all transportation has enjoyed the 
greatest patronage in history, but this traffic is now showing a decline 
and, it was testified, if the present business recession continues the 
traffic will unquestionably fall off more. Operating expenses have .been 
on a constant increase and recently applicant gave its employees a 
wage increase of 10 per cent. 

A comparison of the proposed fares with intrastate fares in the 
States of Ohio, South Carolina, Virginia and West Virginia reveals that 
the new charges will continue to be somewhat lower, as in those States 
the per mile average ranges from 1.87 cents to 2.11 cents. Likewise, 
in the majority of instances the bus fares here proposed will be slightly 
lower than the recently revised rail fares, and, as compared with bus 
fares between points on applicant's Northern and Central divisions, 
will be somewhat lower. 

Prior to the inauguration by the rail carriers of a fare of 1^/2 cents 
per mile, applicable only in coaches, their fares were based on 3.6 
cents per mile, compared with bus fares ranging from 3 cents to 4 cents 
per mile. At the time rail fares were reduced bus fares were also 
lowered, varying from approximately 1.4 cents to slightly over 2 cents 
per mile. 

In consideration of increased operation costs, including wage 
increases, taxes, supplies, etc., it is my opinion that the proposed 
advances, being only slight, are not unreasonable and should be 
granted. 



112 N. C. Utilities Commission 

It is therefore ordered. That application of Atlantic Greyhound 
Corporation dated November 20, 1937, to revise intrastate bus fares, 
be, and the same is hereby, approved, effective on or after December 
20, 1937. 

This 17th day of December, 1937. 

Stanley Winborne, 

Commissioner. 
By order of the Commissioner. 

R. O. Self, Chief Clerk. 
Docket No. 1153. 

REVISION OF FARES OVER ATLANTIC GREYHOUND LINES. 

Order 

Appearances: 

I. M. Bailey, Attorney, Raleigh, for Applicant. 

This revision, involving increases in fares over the lines of the 
Atlantic Greyhound Corporation between Morganton and Shelby, on 
the one hand, and Winston-Salem, on the other hand, from $1.60 and 
$2.25 to $1.70 and $2.30, respectively; between Winston-Salem, and 
the South Carolina State Line via Statesville and Charlotte; between 
the Tennessee State Line and the South Carolina State Line via Hot 
Springs, Asheville and Hendersonville, as well as between Asheville 
and Brevard, via Hendersonville; between Charlotte and the South 
Carolina State Line, via Gastonia and Kings Mountain; and between 
Raleigh and the South Carolina State Line, via Fayetteville and 
Laurinburg, ranging from 5 cents to 25 cents, was heard on September 
17, 1938. There was no opposition. 

This is part of the Atlantic Greyhound's revision of fares within 
the South and involves reductions also. Many fares will remain 
unchanged. As no authority under the law is necessary to establish 
reduced fares, only the adjustment involving increases is reviewed in 
this proceeding. 

In December, 1937, a revision of fares was authorized over appli- 
cant's other divisions between Raleigh and Richmond; Durham and 
Richmond; Durham and Henderson; Raleigh and Henderson, via Louis- 
burg; Raleigh and the South Carolina State Line, via Wilmington; 
and Winston-Salem and Virginia State Line, via Greensboro. As in 
that case, no fares herein exceed 2 cents per mile, but in numerous 
instances the proposed fares are less than this basis. 

There appears no material difference in this proposed revision and 
that authorized in December, 1937. Then, we said: 

"Bus fares in Southeastern territory, the record shows, have 
been unduly depressed by virtue of the IVz cents per mile 
published by the railroads which, on November 15, 1937, were 
increased to 2 cents per mile." 

It was contended at that time that a reasonable relationship should 
be maintained between fares of the railroads and those of the bus lines 
in intrastate travel. While there is nothing of record to show the 
Greyhound's revenue per passenger mile as compared with some of 



Decisions and Adjustments of Complaints 113 

the other carriers operating in North Carolina, the proposed adjust- 
ment does not include fares now published in excess of 2 cents per 
mile and could not, therefore, be considered as unreasonable. 

The proposed revision will be allowed to become effective on 
October 1, 1938, as scheduled. 

It is therefore ordered. That the Atlantic Greyhound Corporation 
be, and it is hereby authorized, to revise its fares in accordance with 
revised pages to its Local Tariffs Nos. 76, 77, 78, and 79, bearing 
N. C. U. C. Nos. 1, 2, 3, and 4, bearing October 1, 1938, as the effective 
date. 

This 20th day of September, 1938. 

By order of the Commissioner : Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1153. 

APPLICATION OF BLUE BIRD TAXI, INCORPORATED, FOR 
AUTHORITY TO OPERATE AS MOTOR VEHICLE CARRIER 
OVER: (ASHEVILLE) PATTON AVENUE, WEST HAYWOOD, 
EMMA ROAD, COUNTY HOME ROAD— N. C NO. 63. 

Postponement of Hearing 

The above matter was called for hearing and after discussion of 
the requirements of the Commission for franchise operators, it was 
agreed that this case be not now passed on but indefinitely postponed 
and that the applicant continue to operate as a contract taxi carrier 
on the route set out in the application until such later date as the 
traffic so developed as to justify a franchise operation, at which time 
it was understood that the applicant could ask the Commission to set 
his case down for hearing. 

When the case was called the applicant presented to, and filed with 
the Commission evidence of the due publication of the notice of the 
application as required by law. 

This 5th day of November, 1937. 

Stanley Winborne, 

Docket No. 1100. Utilities Commissioner. 

APPLICATION OF THE BLUE EAGLE BUS LINE, OPERATING A 
MOTOR VEHICLE STREET BUS SERVICE IN THE CITY OF 
WINSTON-SALEM, FOR FRANCHISE TO OPERATE TO POINTS 
BEYOND THE CITY LIMITS; MORE PARTICULARLY DESCRIBED 
AS STARTING SOUTH ON MAIN STREET AT FOURTH STREET 
TO THIRD STREET, WEST ON THIRD STREET TO LIBERTY 
STREET, NORTH ON LIBERTY STREET TO PATTERSON AVE- 
NUE, NORTH ON PATTERSON TO GLENN AVENUE, NORTH ON 
GLENN AVENUE TO CITY LIMITS, THENCE FROM CITY LIMITS 
TO OGBURN STATION ON ROUTE U. S. 311, WEST FROM 
OGBURN STATION TO OAK SUMMIT. 

Order 
This cause arises upon the application of the Blue Eagle Bus Line 
of Winston-Salem, North Carolina, for a motor vehicle franchise under 



114 N. C. Utilities Commission 

Chapter 136, Public Laws of 1927 and amendments thereto, for 
authority to operate as stated in the caption. Hearing was held on 
November 19, 1936. Petitioner was represented by Attorney John C. 
Wallace of Winston-Salem, and Emmett Fulk, owner of the Blue Eagle 
Bus Line, was present. 

The necessity for this application arises because applicant desires 
to operate beyond the city limits of the City of Winston-Salem. Evi- 
dence was presented to show that the petitioner has authority from 
the City Commissioners of Winston-Salem to operate within the city 
to the city limits, and no opposition was presented to the petitioner's 
application to operate beyond the city limits to Ogburn Station and 
Oak Summit. The petitioner showed that he had been operating 
within the City of Winston-Salem for six or seven years, and during 
a good portion of this time has been operating to the points for which 
he has applied in this application. 

The evidence showed that the applicant's proposal did not conflict 
with the Greyhound Line's franchise from Winston-Salem over the 
same route by Ogburn Station to the State Line because of the fact 
that the first flag stop is one and one-half miles out on Route 311 north. 
There was no evidence to show that there was any competition outside 
the city limits between the petitioner and the Duke Power Company, 
which also operates a bus service within the city limits, but there was 
evidence to show that there was some competition between the peti- 
tioner and the Duke Power Company for seven or eight blocks within 
the city on Patterson Avenue. But the question of operating within 
the city is not before this Commission; therefore, it is considering only 
that portion of the application which lies outside. The total operation 
from the Court Square within the city to Oak Summit would be about 
four and one-half miles, and about one and one-quarter miles of that 
distance is within the city. Witnesses stated that the officials of the 
Greyhound Company had been shown the map and had entered no 
protest. It was also shown that notice had been served on the Grey- 
hound Line of the application and no appearance was entered. There- 
fore, it appears that convenience and necessity will be served by the 
granting of the operation, and it is 

Ordered that the petition be granted, and that the petitioner, upon 
filing insurance and otherwise complying with the law, will be issued 
a certificate and will be given authority to purchase tags under the 
law under which the application is made. 

This December 29, 1937. 

By order of the Commissioner: 

(Signed) Stanley Winborne, 

Commissioner. 
R. O. Self, Chief Clerk. 
Docket No. 844. 



Decisions and Adjustments of Complaints 115 

APPLICATION BOONE MOTOR EXPRESS FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS A CARRIER OF PROPERTY BY 
MOTOR VEHICLE FROM SPRUCE PINE, N. C, TO ASHEVILLE, 
N. C. 

Order 

This cause arises upon the application of Mr. D. L. Boone, operating 
as Boone Motor Express, who applied for franchise certificate as above 
stated on November 17, 1936. 

From the evidence presented, it appears that the applicant in this 
case has been operating a truck line between Spruce Pine and Ashe- 
ville for the past eight years. During that time he has built up a 
regular service and the customers that he serves apparently look to 
him for this service, and other similar operators who operate through 
that section seem to know very little about Mr. Boone's operations, as 
neither had come in contact with the other. Therefore, it appears that 
Mr. Boone's service is not highly competitive, and he presented evi- 
dence by letter, affidavit and telegraph from his customers to the 
effect that they are well satisfied with the service and desire that he 
continue. The applicant in this case operates one truck and there was 
little, if any, evidence to the effect that the business is growing to the 
extent that it will be necessary for him to add additional vehicles to 
his service. 

Since this application was filed with the Commission, a hearing was 
held and certificate was granted over this line, which was recently 
sold to the Turner Motor Lines, now operating as Cole Motor Lines. 
This service operates out of Asheville to Spruce Pine section and 
return, in the morning, and it appears that the Boone Motor Express 
leaves Spruce Pine in the morning and returns in the afternoon. There- 
fore, both operators give two-way service each day in a manner that 
is not competitive, yet appears to render a very satisfactory solution 
of traffic between the points named. From the evidence presented, it 
appears that the granting of this petition will enhance the public 
convenience and necessity of the territory affected; therefore, it is 

Ordered that the petition be granted and that certificate issue when 
the petitioner files insurance and otherwise complies with the letter 
of the law. 

This the 14th day of June, 1937. 

By order of the Commissioner: 

Stanley Winborne, 
R. O. Self, Chief Clerk. Utilities ComTnissioner. 

Docket No. 889. 

CHARLES BRITTON OF BEAUFORT, CARTERET COUNTY, NORTH 
CAROLINA, MAIL CONTRACTOR, VIOLATIONS OF FRAN- 
CHISES OF THE SEASHORE TRANSPORTATION COMPANY 
AND THURSTON MOTOR LINES. 

Opinion and Order 
This case arose upon the complaint of the Seashore Transportation 
Company and Thurston Motor Lines to the effect that the defendant, 



116 N. C. Utilities Commission 

Charles Britton, being a mail carrier over lines over which the com- 
plainants hold franchises for the transportation of passengers and 
property, is transporting both passengers and property in violation of 
Section 8 of Chapter 136, Public Laws of 1927, as amended. 

The Seashore Transportation Company is a duly licensed franchise 
carrier under the Act referred to above and holds Franchise No. 122 
for the transportation of passengers between Rocky Mount via Highway 
No. 40 to Goldsboro, via Highway No. 70 to Kinston, via Highways 
No. 70, No. 12 and No. 17 to New Bern and via Highway No. 70 to 
Beaufort, North Carolina. The Seashore Transportation Company 
does not specifically hold a franchise for the transportation of express 
and property but the Commission has not prohibited the transportation 
of light express by such carrier, and in the absence of specific express 
franchises practically all the passenger carriers in the State have built 
up more or less business transporting such packages that may be 
classed as other than baggage of passengers under Rule 63, as limited 
by Rule 56. It has been the policy of the Commission to not encourage 
express transportation by passenger carriers to the extent that it 
delays schedules or in any way inconveniences the traveling public. 
This policy necessitates shippers delivering such express at bus stations. 

The Thurston Motor Lines holds Franchise No. 399 for the trans- 
portation of property and express between Goldsboro, North Carolina, 
and the North Carolina-Virginia State Line via Highway No. 40 to 
Goldsboro and over highways north of Highway No. 70 between New 
Bern and Goldsboro. Such carriers maintain terminals where shippers 
may make deliveries for shipment, but it is customary to also furnish 
pick-up and delivery service. 

C. W. Britton has the contract for carrying mail between the cities 
of Goldsboro and Beaufort, North Carolina, via Kinston and New Bern, 
which contract route traverses the franchise of the Seashore Trans- 
portation Company between Goldsboro and Beaufort. 

Mr. Hurley Geringer operates a franchise route between New Bern 
and Beaufort for the transportation of express and freight, but is not a 
party to this case. 

Summons was issued against C. W. Britton on the 29th day of June, 
1938, and served by the Sheriff of Carteret County for the appearance 
of Mr. Britton before the Utilities Commissioner at his office in 
Raleigh, North Carolina, at 11:00 o'clock a. m. on the 26th day of 
July, 1938, to show cause, if cause he had, why such practice as is 
herein complained of should not be suspended and upon failure to 
suspend, after hearing and order, why his "for hire" license should not 
be revoked, as provided by Section 8 of the North Carolina Motor 
Vehicle Act. 

The day and hour for the hearing, as named above, having arrived, 
the defendant, C. W. Britton, appeared in his own behalf. The plaintiffs 
were represented by Attorney D. L. Ward and by Assistant Attorney 
General Wade Bruton. The complainant, James M. West, President 
of the Seashore Transportation Company, was present at the hearing, 
but Thurston Motor Lines was not represented. The Utilities Com- 



Decisions and Adjustments of Complaints 117 

missioner having been suddenly called out of the city without having 
time to notify the parties to the case before their arrival in the city 
for the hearing, it was unanimously agreed that the said case should 
proceed and be heard by the Director of Motor Vehicle Transportation. 

The evidence showed that the defendant had been carrying Mr. 
Owen G. Dunn of New Bern continuously during the summer months, 
once each week, to Morehead City and return. Mr. Dunn appeared as 
a witness and testified that he used the mail carrier because of the 
convenience of the schedule, that he rode with the carrier and paid 
him at the end of the summer season, because of the fact that Mr. 
Dunn's family lived in Morehead City during the summer and it was 
necessary for him to go down on Fridays or Saturdays and return 
Sunday evenings or Monday mornings. Because of the fact that this 
appeared to be in the nature of a contract for the season, Mr. West 
agreed that he would withdraw the objection to transporting Mr. Dunn 
and would go so far as to request the mail carrier to carry him if 
Mr. Dunn desired to ride with him (Britton). 

There was other evidence to the effect that the mail carrier picked 
up passengers enroute, but there was about as much evidence that 
some of these passengers rode without charge as there was that others 
rode by paying a fare. This, Mr. Britton admitted. 

Specific charges were made by the plaintiffs that the defendant 
Britton carried automobile accessories and ice creams. Mr. Britton 
testified that he took orders for the ice cream manufacturer of Wilson 
when he obtained the contract to carry the mail and had built up a 
considerable business in Morehead City and Beaufort in this com- 
modity. A representative of the ice cream manufacturer appeared as a 
witness for Mr. Britton and stated that while they did not consider 
Mr. Britton their agent in this particular line, at the same time he had 
obtained considerable business for them and that they desired to fill 
orders obtained by him from the retailers in the towns mentioned. 
There was little or no evidence that he had received such orders from 
persons other than in Beaufort and Morehead City during the summer 
season. 

The complainants presented specific complaint to the effect that 
the mail carrier took orders en route for automobile accessories to be 
obtained either in New Bern, Kinston, Goldsboro or Wilson and trans- 
ported them back to garages and filling stations along the route. Mr. 
Britton admitted this and stated that a custom had been built up by 
operators of isolated garages and filling stations along the route to ask 
the mail carrier to bring bolts, spark plugs, rims, tires and other small 
orders from points up the road in order that they might receive delivery 
that day. He stated that these things were not specifically solicited 
and that such orders, in a manner, had been originally accepted as 
accommodations but that the mail carrier could not spend sufficient 
time to interfere with his schedule of transporting the mail and that 
his having an opportunity to go from Goldsboro to Wilson for ice cream 
or such accessories was permitted because of the time of arrival in 
Goldsboro and his departure therefrom. 



118 N. C. Utilities Commission 

The defendant, C. W. Britton, testified that he had made inquiry 
of the Highway Patrol at the time that he bid on the contract and 
was advised by Capt. Farmer that he would be required to purchase a 
contract, or "for hire," tag if he transported commodities en route, in 
addition to the mail. He stated that he bid on the mail contract with 
that in view. 

The following witnesses, representing the following firms, appeared 
in Mr. Britton's behalf : 

Fred Shumate, Southern Dairies, Inc., Wilson, N. C. 

P. B. Simmons, Shipping Clerk, Hackney Tire Company, dealers 
for Goodrich Co., Wilson, N. C. 

R. E. Kirkland, Pres., Barnes Motor & Parts Co. 

B. F. Carr, B. F. Carr Paint Co., Goldsboro, N. C. 

A. L. Cowan, Goodyear Tire & Rubber Co., Goldsboro, N. C. 
J. P. Wooten, Kinston Auto Parts Co., Kinston, N. C. 

J. E. Andrews, Motor Bearing & Parts Co., Goldsboro, N. C. 
Mrs. W. L. Hastings, Car Spring Co., Goldsboro, N. C. 

B. B. Montague, Standard Auto Parts Co., Goldsboro, N. C. 

C. A. Grantham, Harvey Motor Co., Kinston, N. C. 
Owen G. Dunn, Manufacturing Stationer, New Bern, N. C. 
A. T. Patton, Mill Supply Co., New Bern, N. C. 

W. J. Ipock, Vice-Pres., Craven Foundry & Machine Co., New Bern, 
N. C. 

Many of these witnesses testified that Mr. Britton did not solicit 
them but that they had become accustomed to using his service and 
usually called the mail carrier when passing by. 

During the hearing it developed that the defendant, C. W. Britton, 
did not own the truck that was being operated, nor does he operate 
the truck, but that the same was purchased by him and in turn sold 
to Mr. W. I. Loftin, with whom he has an arrangement to carry the 
mail for him; that Mr. Loftin pays Mr. Britton 25 per cent of all 
revenue which he receives from transporting passengers and property 
along the route with the mail, Mr. Loftin receiving 75 per cent of such 
revenue as his compensation. 

Whereupon, motion was made by attorneys for plaintiffs that Mr. 
Loftin be summoned to appear also. The motion was granted and it 
was agreed that Mr. Loftin's deposition would be taken in Morehead 
City, N. C, at 8:00 o'clock p. m. on July 29, 1938, before R. O. Self, 
Chief Clerk and Director of Motor Vehicle Transportation of the 
Utilities Commission, 

On the date appointed for the taking of the deposition, Messrs. 
W. I. Loftin, D. L. Ward, James M. West and C. W. Britton appeared 
at the Fort Macon Hotel, Morehead City, at which time Mr. Loftin 
accepted service of summons and submitted to a deposition with ref- 
erence to his connection and relationship with the operation in ques- 
tion. Mr. Loftin verified the things that Mr. Britton had stated — that 
the truck was his, was furnished to him by C. W. Britton, mail con- 
tractor, and that he paid Mr. Britton 25 per cent of the revenues taken 
in from operation other than mail and retaining 75 per cent as his 



Decisions and Adjustments of Complaints 119 

compensation. It was agreed by Mr. Loftin that the transportation of 
passengers would cease from that day forward, but Mr. Loftin stated 
that it would be impossible for him to continue to operate the mail 
line for Mr. Britton for the reason that his compensation all came 
from the revenue obtained from the operation other than the trans- 
portation of mail. 

From the evidence, it appears that the rate charged by C. W. 
Britton for transporting ice cream is 33c per hundred when the Sea- 
shore Transportation Company charges 25c. There was little evidence 
presented with reference to specific rates charged by either carrier on 
other commodities for the reason that the shipments were small and 
probably minimum charges for small amounts are made. But the fact 
exists that a large percentage of the business transported by the 
defendant comes from towns other than the town of his residence; 
therefore, the great percentage of the business which he transports 
appears to be that kind of a transportation service which is outlined 
by law to be rendered by a franchise carrier and the defendant has no 
franchise for the operation of this line and it is a higher class service 
than that which is generally termed contract, but no written contracts 
exist for his service and he would not be in a position to render the 
service if it were not for the fact that he is carrying mail and passing 
over the highway route both ways daily. 

It appears from the evidence outlined in the foregoing that the 
defendant is operating in violation of the statute made and provided 
in regulation of such transportation, that the commodities obtained and 
transported by him are from dealers in towns other than his residence, 
for which no contracts exist, and that his transportation of such pas- 
sengers and property is in violation of Section 8, Chapter 136, Public 
Laws of 1927, as amended. 

It is recommended that it be ordered that the said C. W. Britton 
and W. I. Loftin cease and desist from the transportation of passengers 
and property between towns, or between cities, or between cities and 
towns in this State, and that the said cease and desist order be effective 
within twenty (20) days following midnight of the day on which copy 
of this order is served upon the defendant. 

This 23rd day of August, 1938. 

R. O. Self, 

Director Motor Vehicle Transportation. 

The foregoing opinion is hereby concurred in and adopted and the 
defendants, C. W. Britton and W. I. Loftin, are hereby ordered to cease 
and desist, as recommended in the opinion above. 

This 31st day of August, 1938. 

Stanley Winborne, 

Utilities Commissioner. 
Docket No. 1369. 



120 N. C. Utilities Commission 

APPLICATION WILLIAM T. CALLOWAY FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS A MOTOR VEHICLE CARRIER OF 
PROPERTY BETWEEN WASHINGTON, N. C, AND ENGLEHARD, 
N. C, OVER STATE HIGHWAY 91 AND U. S. HIGHWAY 264. 

Order 

This cause arises upon the application of William T. Calloway of 
Washington, N. C, for franchise authority as a motor vehicle carrier 
from Washington, N. C, to Englehard, N. C, over State Highway 91 
and U. S. Highway 264. This application was filed with the Commission 
on March 24, 1937, and was heard on May 19, 1937, at 11:00 o'clock 
A.M. 

Evidence was presented to show that the application had been 
published according to law and other carriers entitled to notice of 
hearing had been so notified. It was presented in evidence that the 
petitioner in this case is a carrier of mail between the points in ques- 
tion and has been carrying both property and passengers at various 
times intermittently on the mail schedules. Mr. S. M. Gibbs is the prior 
holder of a franchise between the points in question and had com- 
plained to this Commission to the effect that the applicant in this case 
had been infringing upon his franchise rights. This proceeded to the 
point where Mr. Gibbs, in the name of the Utilities Commissioner, had 
instituted proceedings against the present petitioner in this case to 
restrain him from carrying passengers and property on the mail line. 
The case was tried in Superior Court and petitioner Calloway was 
restrained from so operating, and thereupon he made application for 
a franchise certificate to run over the same highway that Mr. Gibbs 
was at that time, and is now, operating. Messrs. Carrington and Jones 
are also operators between the points mentioned in this application 
and operate trucks and carry property generally, including both freight 
and express. 

Both of the above operators, one as a passenger and the other as a 
freight carrier, and both of which carry express, have been operating 
for some years and have worked up considerable business and have 
made investments in order to extend this service. It appears that the 
petitioner in this case probably underbid one of the present operators 
on the line in order to get the mail contract and it now appears that 
it may be necessary for these mail carriers to go out of the way and 
infringe upon the franchises above named if they are to receive a 
sufficient remuneration from the operation to continue profitably the 
carriage of the mail. This Commission has nothing whatever to do 
with the transportation of mails as our Motor Vehicle Act exempts 
mail trucks from its operation. This Commission has on several 
occasions authorized mail carriers to also carry passengers and 
property, where the convenience of the public was enhanced thereby, 
when such operation did not affect an existing franchise, or franchises 
on the route; but from the evidence, it appears that in this case the 
business is not sufficient to support more than one passenger carrier 
nor to support more than one LCL express carrier. Therefore, it 
becomes necessary for this Commission to look to the interest of the 



Decisions and Adjustments of Complaints 121 

public in the matter and where there is not sufficient service already 
being operated by the present certificate holder, it is the duty of this 
Commission to order a sufficient amount of service on the line by the 
present carrier, as provided by Paragraph F, Section 2 of the Act, and 
if the present operator is able to furnish the additional service ordered, 
then it becomes the duty of this Commission to deny this application. 

Therefore, it is ordered that the application of William T. Callo- 
way be denied. 

It is further ordered that the present operators, Carrington and 
Jones, holders of a freight franchise over this route, be, and the same 
are hereby required to inaugurate immediately a schedule both ways 
morning and evening in order to serve these communities; and that 
the passenger carrier, Mrs. S. M. Gibbs, is also hereby ordered to 
institute a passenger schedule both ways morning and evening; and 

It is further ordered that if the present holders of franchises 
operating over the highway in question between Washington, N. C, 
and whatever their eastern destination at the present time may be, 
fails within thirty (30) days from the date of this order to inaugurate 
the additional service required herein, the Commission will consider 
further the application of William T. Calloway with reference to the 
service in this section. 

It is further ordered that the applicant, William T. Calloway, 
continue to comply with the restraining order of the Superior Court 
now in force and shall cease and desist from the carriage of any pas- 
sengers or property on the highways between Washington, N. C, and 
Englehard, N. C. 

This the 14th day of June, 1937. 

By order of the Commissioner: 



Stanley Winborne, 

Utilities Commissioner. 



R. O. Self, Chief Clerk. 
Docket No. 983. 



APPLICATION OF CAPITAL COAST EXPRESS COMPANY FOR 
FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE 
CARRIER FROM POLLOCKSVILLE THROUGH MAYSVILLE TO 
JACKSONVILLE OVER U. S. 17; JACKSONVILLE TO MANS- 
FIELD OVER N. C. 24; MANSFIELD THROUGH MOREHEAD 
TO BEAUFORT OVER U. S. 70 AND RETURN OVER SAME 
ROUTE. 

Order 
This application was filed by the applicant, advertised in due 

course, according to law, and heard by the Commission on November 

20, 1936, at 2:30 o'clock P.M. 

Between the hearing date and the date that notice appeared in the 
press. Hurley Geringer, operator of a motor vehicle service by truck 
between New Bern and Atlantic over U. S. Route 70 and State Highway 
10, filed a brief with the Commission stating that he was of the 
opinion that an additional service to Beaufort would not make the 



122 N. C. Utilities Commission 

service to that town remunerative to either carrier. Upon the strength 
of this brief, the petitioner, the Capital Coast Express Company, with- 
drew the petition with the understanding that he was doing so by- 
agreement with Mr. Geringer that he would transfer and exchange 
freight with him at New Bern, N. C. Therefore, it is 

Ordered that the petition be dismissed. 

This June 30, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 770. 

JOINT APPLICATION OF THE CAROLINA COACH COMPANY 
AND THE GREENSBORO-FAYETTEVILLE BUS LINE, INC., AND 
APPLICATION OF ATLANTIC GREYHOUND CORPORATION, 
FOR A LICENSE CERTIFICATE FOR OPERATION OF A MOTOR 
VEHICLE CARRIER. 

Order 
This case was heard by Stanley Winborne, Utilities Commissioner, 
and Fred L. Seely and Frank W. Hanft, Associate Commissioners, in 
the City of Raleigh, beginning March 28, 1938, and continuing through 
April 1, 1938, during which period evidence was offered. At the hear- 
ing the Seashore Transportation Company intervened in favor of the 
application of the Atlantic Greyhound Corporation. On April 4th, oral 
arguments were made on behalf of both applicants, and of the inter- 
veners. 

Attorneys for applicants Carolina Coach Company and Greens- 
boro-Fayetteville Bus Line, Inc.: 

L. P. McLendon 

Willis Smith 

R. G. Cherry 

W. E. Smith 

Paul R. Raper 

W. P. Horton 

K. J. Kindley 

J. Lee Moody 
Attorneys for applicant Atlantic Greyhound Corporation: 

J. C. B. Ehringhaus 

I. M. Bailey 

H. G. Hudson 

Daniel L. Bell 

J. F. Spruill 

Wade Barber 
Attorneys intervening for Atlantic Greyhound Corporation: 

D. L. Ward, Seashore Transportation Co. 

Ira T. Johnston, Board County Commissioners, Ashe County. 

Hanft, Associate Commissioner: 

The Commission finds as facts: That applicants Carolina Coach 
Company and Greensboro-Fayetteville Bus Line, Inc., are corporations 
organized and existing under the laws of the State of North Carolina. 
Applicant Atlantic Greyhound Corporation is a corporation organized 
and existing under the laws of the State of Virginia. On February 12, 
1937, there was filed with the Commission the joint application of the 



Decisions and Adjustments of Complaints 123 

Carolina Coach Company and the Greensboro-Fayetteville Bus Line, 
Inc., for a license certificate for the operation of a motor vehicle car- 
rier of passengers from Raleigh, N. C, to Lexington, N. C, by the 
following route: Raleigh to Apex by U. S. Highway number 1, Apex 
to junction of U. S. Highway number 64 and N. C. Highway number 
55 by N. C. Highway number 55, thence to Lexington by U. S. Highway 
number 64. On January 10, 1938, there was filed with the Commission 
the application of Atlantic Greyhound Corporation for a license cer- 
tificate for the operation of a motor vehicle carrier of passengers from 
Raleigh, N. C. to Lexington, N. C. by U. S. Highway number 64. The 
route proposed in the first mentioned application and the route pro- 
posed in the second are identical, save that the first leaves U. S. High- 
way number 64 to enter Apex by U. S. number 1, and returns to 
U. S. Highway number 64 by N. C. Highway number 55. This deviation 
is for a trifiing distance; practically the two applications are for cer- 
tificates over the same route. No one appeared in opposition to the 
granting of a certificate over this route to one applicant or the other. 
It was admitted at the hearing by both sides, and the Commission finds 
that each applicant is financially and otherwise able and ready to 
render such service over the proposed route as the public convenience 
and necessity requires. It was further admitted by both sides at the 
hearing and the Commission finds that public convenience and neces- 
sity requires the operation of a bus line over the proposed route. 
Accordingly, this case narrows to the question which applicant should 
be granted the certificate sought. The Commission finds that the greater 
public convenience and necessity will be served by granting this cer- 
tificate to the Atlantic Greyhound Corporation. 

The Atlantic Greyhound Corporation operates an extensive system 
of bus lines in the western portion of this State, which lines are part 
of a large system extending into other states. The Atlantic Greyhound 
likewise operates bus lines in the eastern portion of this State, which 
lines likewise connect with others to make a system extending into 
other states. The eastern and western systems of the Atlantic Grey- 
hound have no connecting link in this State. This Commission finds 
that an advantage to the traveling public will arise by connecting two 
extensive systems already being operated in the State by the same 
company. Not only will through continuous service be furthered, but a 
better coordinated service will be stimulated. 

The question is presented whether these substantial advantages can 
be gained for the traveling public without bringing about disadvantages 
which outweigh them arising from the effect of the new service upon 
the operations of carriers already in the field. About three years ago 
this Commission conducted a hearing on the application of the Atlantic 
Greyhound to connect its eastern and western systems over a route 
between Raleigh and Greensboro by way of Chapel Hill. The Com- 
mission by its order of July 31, 1935, denied the application. In the 
judgment of the majority of the Commission the advantages of the 
east-west connection of the Greyhound system were outweighed by the 
fact that the route then proposed coincided for about half the distance 
with an existing operation of the Carolina Coach Company, and for 



124 N. C. Utilities Commission 

the remainder of the distance paralleled the Carolina Coach Company 
operation. The two routes were at no point more than about twelve 
miles apart. The Commission was of the opinion that systematized 
and responsible public bus transportation could not be built up and 
maintained if existing operations rendering satisfactory service were 
to be subjected to new operations over the same routes. For that rea- 
son the application in that case was denied. The Commission adheres 
to the principle relied upon in that case, but believes that it is not 
applicable to this one. Here the proposed route duplicated existing 
operations for a relatively negligible distance, namely the distance 
between Raleigh and the point where U. S. Highways 1 and 64 separate 
north of Apex. 

It is true that the new route crosses or joins routes operated by 
one or the other of the joint applicants at Lexington, Asheboro, Siler 
City, Pittsboro and Apex-Raleigh. It is also true that the new east-west 
route will offer an alternative to existing routes operated in whole or 
in part by joint applicants. For example, a pasenger may travel from 
Winston-Salem over the Greyhound Lines to Lexington, thence over 
the new route to Raleigh, instead of traveling from Winston-Salem to 
Greensboro by the Greyhound, thence to Raleigh by the Carolina 
Coach. It was urged upon the Commission by the joint applicants that 
the possibilities of travel over the new route in lieu of travel over 
existing routes opened the possibility of diverting from existing routes 
of the Carolina Coach Company traffic to the extent of $1,708.06 per 
month. (See Exhibit 30) By Exhibits 27, 28, and 29, the Greensboro- 
Fayetteville Bus Line sought to show the possible diversion from il. 
Where a new route will take from existing routes revenue in such 
volume as to impair the financial success of operations over the exist- 
ing routes a strong reason exists for not granting a rival company a 
certificate over the new route, provided, of course, that the existing 
routes are rendering valuable public service, as is true in this case. 
However, the Commission finds that diversion in the present case will 
not occur in such volume as to impair the success of operations over 
existing routes. The above figures on diversion represent maximum 
possible diversion, assuming that all passengers who could travel on 
the new route or the old ones will travel on the new route. No one 
has contended that any such thing will occur. For example, the new 
route offers a possibility of travel from Winston-Salem to Raleigh by 
the new route from Lexington on instead of by way of Greensboro, 
an existing route. The witness Sullivan for the Atlantic Greyhound 
testified that there are seven schedules per day via Greensboro, where- 
as there are proposed by the Greyhound three schedules per day 
via Lexington. Assuming that the three schedules took all the business 
of the three existing schedules nearest in time of departure, the maxi- 
mum diversion would be three-sevenths of the Winston-Salem-Greens- 
boro-Raleigh traffic, not all of it. The Commission does not believe 
that even three-sevenths of this traffic will be diverted. Some passen- 
gers will prefer to go via Greensboro even though a schedule is 
offered at the same hour via Lexington. Further, the diversion from 



Decisions and Adjustments of Complaints 125 

old routes will be compensated in part by new traffic fed the old routes 
by connection afforded by the new operations. 

On the other hand, if the certificates for operations over the new 
route were granted to the joint applicants, no advantage would be 
gained comparable to the connection of the eastern and western lines 
of the Greyhound. This route would merely add another east-west line 
to those the Carolina Coach Company already operates. It would not 
afford a major new link in the systems of the joint applicants. 

Wherefore, it is ordered: 

1. That the application of the Carolina Coach Company and the 
Greensboro-Fayetteville Bus Line, Inc., be, and the same is, hereby 
denied. 

2. That the application of the Atlantic Greyhound Corporation 
be granted and that a license certificate be issued accordingly. That 
until further order by this Commission the schedules be as provided 
in Atlantic Greyhound Corporation's Exhibit B of Exhibit 26, and 
that the tariff be as shown in Exhibit A of Exhibit 26. That the Atlantic 
Greyhound Corporation begin service within 30 days from date 
hereof. 

This the 7th day of April, 1938. 

(Signed) Stanley Winborne, 

Commissioner. 
(Signed) F. L. Seely, 

Associate Com^missioner. 
(Signed) Frank W. Hanft, 

Associate Commissioner. 
By order of the Commissioner: 

(Signed) R. O. Self, Chief Clerk. 
Docket Nos. 946 and 1192. 

JOINT APPLICATION OF THE CAROLINA COACH COMPANY AND 
THE GREENSBORO-FAYETTEVIILE BUS LINE, INC., AND AP- 
PLICATION OF ATLANTIC GREYHOUND CORPORATION FOR 
LICENSE CERTIFICATE FOR OPERATION OF A MOTOR 
VEHICLE CARRIER. 

Order Overruling Exceptions 

This cause again comes before the Utilities Commission upon 
exceptions filed by the Carolina Coach Company and the Greensboro- 
Fayetteville Bus Line, Inc., to the order of this Commission made and 
entered on the 7th day of April, 1938. 

The said Carolina Coach Company and Greensboro-Fayetteville Bus 
Line, Inc., presents eight (8) exceptions to the findings of fact and 
two (2) exceptions to the matters of law in said order. 

This Commission has carefully considered each and all of the 
exceptions filed and finds that no new argument or reason is presented 
by said exceptions which was not presented and/or fully considered by 
this Commission in reaching its decision, as set forth in its order of 
the 7th day of April, 1938. 



126 N. C. Utilities Commission 

Wherefore each and all of the exceptions filed are hereby over- 
ruled, disallowed and denied. 

This the 29th day of April, 1938. 

(Signed) Stanley Winborne, 
Dockets Nos. 946 and 1192. Commissioner. 

APPLICATION CAROLINA COACH COMPANY FOR FRANCHISE 
TO OPERATE AS MOTOR VEHICLE CARRIER FROM: GREEN- 
VILLE TO BETHEL ON N. C. 11; TARBORO TO LEGGETT ON 
N. C. 44; LEGGETT TO JCT. U. S. 258 ON N. C. 95; RICH SQUARE 
TO WOODLAND ON U. S. 258; WOODLAND TO CONWAY ON 
N. C. 45; CONWAY TO MURFREESBORO ON U. S. 158; MUR- 
FREESBORO TO WINTON ON N. C. 35. 

Order 

This cause came before the Commission upon the application of the 
Carolina Coach Company for a Certificate of Convenience and Neces- 
sity to operate passenger motor bus service from Greenville to Bethel 
on N. C. 11, Tarboro to Leggett on N. C. 44, Leggett to Junction U. S. 
258 on N. C. 95, Rich Square to Woodland on U. S. 258, Wood- 
land to Conway on N. C. 45, Conway to Murfreesboro on U. S. 158 and 
Murfreesboro to Winton on N. C. 35. The petitioner was represented by 
Hon. Willis Smith of Raleigh and the protestant, Atlantic Coast Line 
Railway, was represented by Mr. Murray Allen of Raleigh. 

The Commission finds as a fact that that proposed portion of the 
new operation over routes where the petitioner does not now have a 
certificate has no transportation facilities whatever and that there is a 
definite need for passenger transportation service and that the con- 
venience of the public will be greatly promoted by this additional ser- 
vice. Mr. Allen, for the Atlantic Coast Line Railway, protested but 
offered no testimony to show that the service was unnecessary or that 
it would not be to the convenience of the public. 

Wherefore, it is hereby ordered that the certificate of the Carolina 
Coach Company be amended so that its service may be extended and 
added to over the routes proposed in its application. 

This, the 11th day of May, 1937. 

Stanley Winborne, 
By order of the Commissioner: Commissioner. 

R. O. Self, Chief Clerk. 

Docket No. 997. 

APPLICATION OF CAROLINA COACH COMPANY TO REVISE 
PASSENGER FARES BETWEEN LEXINGTON AND CHAR- 
LOTTE, N. C. 
Appearances: Order 

E. F. Stoughton and Henry H. Hearn, for Carolina Coach Com- 
pany, Raleigh, N. C. 
Hearing on the above application was held before the Commis- 
sioner on June 16, pursuant to notice issued on the 25th day of May, 
1938. No one appeared in opposition thereto. 



Decisions and Adjustments of Complaints 127 

Prior to the inauguration of bus service between Raleigh and 
Lexington by the Atlantic Greyhound Lines, the fares of applicant 
between these two points via Greensboro was $1.95. The fare to 
Winston-Salem is $1.90, and in order that the fares between Raleigh 
and Lexington should be no higher than that between Raleigh and 
Winston-Salem, it was necessary to place Lexington on the same fare 
basis. This resulted in a reduction in fares between Lexington and 
Charlotte, and intermediate points, on the one hand, and Raleigh, on 
the other, by use of a combination of fares to and from Lexington 
lower than the through published fares. 

In order that these discrepancies might be removed, it is proposed 
to increase the fares between Lexington, on the one hand, and Char- 
lotte, and intermediate points, on the other hand, except between 
Lexington and Linwood Road, which will remain 25 cents, which will 
not, therefore, disturb the present through published rate of $2.90 
between Raleigh and Charlotte, including intermediate points between 
Lexington and Charlotte. 

It appears that the present fares west and south of Lexington are 
on a lower mileage basis than the new fare between Raleigh and Lex- 
ington and that the increases here proposed will place fares west and 
south of Lexington on a parity with that of the former. In other 
words, from Lexington to Charlotte the proposed fare of $1.00 will 
be equivalent to 1.56 cents per mile compared with 1.57 cents between 
Raleigh and Lexington for distance of 121 miles. 

The proposed increases will not result in unreasonable fares and 
the application should be allowed. 

It is therefore ordered, That application of Carolina Coach Com- 
pany to revise fares between Lexington, on the one hand, and Char- 
lotte, and intermediate points, on the other hand, be, and the same is, 
hereby granted. 

This 20th day of June, 1938. 

By order of the Commission: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1153. 

REVISION OF BUS FARES OVER CAROLINA SCENIC COACH 
LINES. 

Order 
Application of the above company wherein both increases and 
reductions are involved, was filed in pursuance of Section 16, Chapter 
134 of the Public Laws of 1933, and heard on September 17, 1938. 
Under this section only increases require approval of the Commissioner. 
The Carolina Scenic Coach Lines extends from Columbia, S. C, 
to Asheville, via Spartanburg and Hendersonville, without any privi- 
lege to transport passengers locally between Asheville and Hender- 
sonville. 

There are 11 increases proposed ranging from 5 cents to 15 cents, 
and 17 reductions. 26 fares will remain unchanged. The only North 
Carolina points served by applicant are: Tryon, Turner's Store, Saluda, 



128 N. C. Utilities Commission 

High Bridge, East Flat Rock, Hendersonville, Mills River, Avery 
Creek, Bent Creek, West Asheville and Asheville. 

As these fares are in line with those proposed by the Atlantic 
Greyhound Corporation between Asheville and the South Carolina 
State Line, which have today been approved, and as they are not 
unreasonable, applicant, Carolina Scenic Coach Lines, will be per- 
mitted to put them in effect. 

It is therefore ordered, That application of the Carolina Scenic 
Coach Lines for authority to revise its fares, be, and the same is 
hereby approved. 

This the 20th day of September, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1153. 

APPLICATION OF THE CENTRAL COACH LINES, INCORPORAT- 
ED, FOR FRANCHISE CERTIFICATE TO OPERATE AS MOTOR 
VEHICLE CARRIER OVER THE FOLLOWING ROUTE: FROM 
LUMBERTON TO RUN BY STATE HIGHWAY NO. 41 TO ELIZA- 
BETHTOWN; THENCE BY U. S. 701 BY WAY OF WHITE LAKE 
TO CLINTON; THEN BY U. S. 421 TO DUNN; THEN BY U. S. 301 
TO SMITHFIELD, SELMA, KENLY, LUCAMA TO WILSON; THEN 
BY STATE HIGHWAY 42 TO PINETOPS AT A JUNCTION WITH 
U. S. 258, AND ON THE SAME TO TARBORO. 

Order 

This cause comes on to be heard upon the application of the 
Central Coach Lines, Inc., for a Certificate of Public Convenience and 
Necessity to operate passenger buses from Lumberton as follows : From 
Lumberton to run by State Highway No. 41 to Elizabethtown; thence 
by U. S. Highway 701 by way of White Lake to Clinton; then by U. S. 
421 to Dunn; then by U. S. 301 to Smithfield and Selma, Kenly, 
Lucama to Wilson; then by State Highway 42 to Pinetops at a junction 
with U. S. 258, and on the same to Tarboro. 

This application was originally made by George R. Ross prior to 
the organization of the company above-named, and the original appli- 
cation included some of the highways referred to in Docket Nos. 40 
and 863, but the petitioner was given leave to amend his application 
at the hearing and it was agreed between the representatives of the 
Queen City Coach Company and Mr. Ross to amend the application so 
that the highways over which the Central Coach Lines, Inc., desires 
to operate would not conflict with the application of the Queen City 
Coach Company in Docket Nos. 40 and 863, as amended. The amend- 
ment to this application eliminated some of the conflicts between this 
applicant and the Safway Transit Company also. Therefore, the Saf- 
way Transit Company was before the Commission at the same time 
and was permitted to amend its application so as to confine its operation 
to that routing from Jacksonville to Richlands to Kinston, Kinston to 
Snow Hill, Farmville, Pinetops and Rocky Mount. This routing as 



Decisions and Adjustments of Complaints 129 

quoted herein eliminates the application for routing from Dunn to 
Wilson and Tarboro, which is included in Docket No. 992. 

Evidence was presented that indicates that public convenience will 
be enhanced by the granting of this application. Therefore, it is 

Ordered that the petition be granted as follows: From Lumberton 
to run by State Highway No. 41 to Elizabethtown; thence by U. S. 
Highway 701 by way of White Lake to Clinton; then by U. S. Highway 
421 to Dunn; then by U. S. 301 to Smithfield and Selma, Kenly, Lucama 
to Wilson; then by State Highway 42 to Pinetops at a junction with 
U. S. Highway 258 and on the same to Tarboro, and when the applicant 
has complied with the provisions of the Statute for filing equipment 
specifications, insurance, and such other requirements as may be 
necessary under the Commission's Rules and Regulations, that certifi- 
cate will be issued. 

This 14th day of July, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 992. 

APPLICATION DICK'S FREIGHT LINE FOR AUTHORITY TO 
OPERATE TRUCKS BETWEEN NORTH WILKESBORO AND 
MORGANTON VIA LENOIR, HIGHWAY NO. 18. 

Order 

In the application of Dick's Freight Line to operate over Highway 
No. 18 between North Wilkesboro and Morganton via Lenoir, the 
application was originally made to include Morganton to Hickory over 
State Highway No. 10, Federal Highway No. 64, and Hickory to North 
Wilkesboro over State Highway No. 16; but at the hearing on Novem- 
ber 29, 1936, the application was amended to exclude that part of the 
operation applied for over Routes 10, 64 and 16. 

This application has given the Commission some concern in that 
the applicant is not already an operator and the line applied for is very 
short, and the Commission has been of the opinion that the operation 
in itself will not be self-sustaining. There are a number of motor 
vehicle carriers operating in the vicinity that is affected by this appli- 
cation and experience in this kind of transportation teaches that such 
short operation, especially where practically every shipment is a two 
or more line haul, diminishes the revenue below the point where 
expenses, including taxes, cannot be made; and to grant such an 
application usually results in loss to the operator and an early transfer 
of the franchise to some other carrier. Other applicants for this line 
have been turned down from time to time during the life of the Motor 
Carrier Act and it is thought that eventually some carrier who can 
extend his operation over this road will make application, and that the 
service can be rendered at the minimum cost. Therefore, it is 

Ordered that the petition be denied. 

This July 6, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 812. 



130 N. C. Utilities Commission 

APPLICATION W. L. DILLINGHAM FOR PASSENGER FRANCHISE 
TO OPERATE AS MOTOR VEHICLE CARRIER FROM BARN- 
ARDSVILLE TO ASHEVILLE AND RETURN, OVER THE FOL- 
LOWING ROUTE: BARNARDSVILLE TO STOCKS VILLE ON 
HIGHWAY 695, AND FROM STOCKSVILLE TO ASHEVILLE 
OVER U. S. 1923, AND RETURN OVER THE SAME ROUTE. 

Order 

This cause arising on the application of W. L. Dillingham for 
franchise as outlined in the caption of this order, and no evidence 
being presented which would prove convenience and necessity, it is 

Ordered that the petition be dismissed. 

This 14th day of July, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 976. 

HELMS MOTOR EXPRESS. 

Order 
To THE Commission: 

The above application being under consideration and having in 
mind the congested condition of the Commission's Docket, and also 
having before us a request of Helms Motor Express through its man- 
ager, Mr. Burton, to postpone the hearing date to some date after 
January 27th, 1938, it is thought oKpedient to postpone said hearing 
indefinitely. 

Therefore, it is ordered that the hearing in Dockets Nos. 1178 
and 1179 be postponed until such time as the Commission is of the 
opinion that it can go into the matter and give it the proper consid- 
eration. 

This the 11th day of January, 1938. 

By order of the Commissioner: Stanley Winborne, 

By R. O. Self, Chief Clerk. Commissioner. 

Dockets Nos. 1178 and 1179. 

HELMS MOTOR EXPRESS APPLICATION FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM 
PITTSBORO TO RALEIGH OVER HIGHWAY ROUTE NO. 64. 

Order 
This cause arises upon the application of Helms Motor Express for 
a franchise certificate to operate as a motor vehicle carrier of property 
between the cities of Raleigh and Pittsboro over Highway No. 64. 
The applicant produced evidence that the application was adequately 
advertised in the State in accordance with law. The applicant now 
operates a line from Durham, N. C, through Chapel Hill and Pittsboro 
to Sanford and other points South and West. Applicant also operates 
from Sanford to Raleigh over Highway No. U. S. 1. Applicant is of 
the opinion that the convenience of the public will be more adequately 



Decisions and Adjustments of Complaints 131 

served, and produces evidence to show that the public convenience and 
necessity will be enhanced by its operation over this Highway 64 
between Raleigh and Pittsboro. 

No opposition appeared at the hearing, but prospective applicants 
discussed the question of proposed operations from Raleigh to points 
in Western Carolina and called attention to the fact that in such event, 
the Highway between Raleigh and Pittsboro would be the proper 
route to use as an all-carrier thoroughfare because of the fact that 
little if any business demand exists between Apex and Asheboro and 
therefore would provide an all-carrier avenue without much possi- 
bility of local competition between them. Therefore, it appears that 
this certificate should be granted with this reservation under the cir- 
cumstances, and while authority is being granted to the applicant to 
operate over Highway No. 64 between Apex and Pittsboro, the 
Commission reserves the right if and when public convenience and 
necessity requires, to route the carriers over this link between Pitts- 
boro and Raleigh if it becomes necessary to serve the public West of 
Pittsboro over this line. 

Therefore, it is ordered that the application be granted with the 
above reservation and that the applicant's certificate No. 273 be 
amended accordingly. 

This 7th day of June, 1938. 
R. O. Self, Chief Clerk. 

Stanley Winborne, 

ComTTiissioner. 
Docket No. 1179. 

APPLICATION HELMS MOTOR EXPRESS FOR MOTOR VEHICLE 
FRANCHISE CERTIFICATE FROM PINEHURST TO BISCOE VIA 
WEST END, EAGLE SPRINGS, SAMERCAND AND CANDOR 
OVER HIGHWAY NO. 2 AND PINEHURST TO CARTHAGE VIA 
HIGHWAY NOS. 15 AND 501. 

This cause arises upon the application of Helms Motor Express for 
additional franchise routes as outlined above. The applicant produced 
evidence to the effect that the application was adequately advertised 
in accordance with law and no opposition appeared at the hearing. It 
was also placed in evidence that the applicant had been serving the 
towns mentioned in this application for some time in order to meet 
convenience and necessity of the public, because no other was being 
rendered. Therefore, it is of the opinion that the granting of the 
application is in the interest of the convenience of the public. 

Therefore, it is ordered that the application be granted and that 
the applicant's Certificate No. 273 be amended in accordance therewith. 

This 7th day of June, 1938. 
R. O. Self, Chief Clerk. 

Stanley Winborne, 
Utilities Commissioner. 
Docket Nol 1211. 



132 N. C. Utilities Commission 

PETITION HERBERT C. HENSLEY, OPERATING AS HENSLEY 
MOTOR LINES, WITH OFFICES AT 101 SOUTH LEXINGTON 
AVE., ASHEVILLE, NORTH CAROLINA, FOR FRANCHISE CER- 
TIFICATE FROM ASHEVILLE TO SPRUCE PINE VIA BURNS- 
VILLE OVER U. S. HIGHWAY NO. 19. 

Order 

This application for authority to operate from Asheville to Spruce 
Pine via Burnsville, North Carolina, over United States Highway No. 
19 was filed with this Commission on October 28, 1936, and was set 
for hearing on November 18, 1936, at eleven- thirty o'clock a. m. in 
the office of the Commissioner. The application was properly adver- 
tised, as required by law, in the Asheville Citizen on October 31, 
November 1, and 2, 1936, and the evidence of publication was duly 
certified under seal by the proper officials of the said publication above 
named. 

The time for hearing having arrived, the petitioner appeared in 
his behalf. No opposition appeared. Other operators in that territory 
were present during the hearing and stated that service was needed 
over this route, and, since no certificate is outstanding over the route, 
the operators desired a franchise carrier with whom to do business to 
points on the proposed route, therefore, nothing appearing to the 
contrary, 

It is ordered, That the petition be granted, and when the peti- 
tioner, Robert C. Hensley, complies with the law by filing public 
liability and property damage insurance, certificate shall issue and 
also authority shall be issued for the petitioner to purchase tags from 
the Department of Revenue in accordance with the Statute. 

This December 8, 1936. 

By order of the Utilities Commissioner: Stanley Winborne, 

Attest: R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 873. 

EAST CAROLINA TRUCKING ASSOCIATION, INCORPORATED, 
FOR A FRANCHISE CERTIFICATE TO OPERATE AS A RE- 
STRICTED COMMON CARRIER. 

Order 

This case arises upon the application of the East Carolina Trucking 
Association, Incorporated, for Restricted Franchise to transport 
alcoholic beverages from warehouse and pool cars to Alcoholic Bever- 
age Control Stores located within North Carolina. 

The applicant is a corporation and if not a subsidiary, is owned by 
the same interests as the East Carolina Warehouse Association in 
Wilson, North Carolina. This Warehouse Association warehouses for 
distribution alcoholic beverages and the applicant in this case was 
organized for the purpose for which it is asking authority — to specialize 
in transporting not only from warehouse but from pool cars from 
such places as the manufacturing shipper may place them for the 



Decisions and Adjustments of Complaints 133 

distribution of the alcoholic beverage products to such Alcoholic 
Beverage Control Stores as may be designated. 

The case was set for hearing in the office of the Commission at 
10:30 o'clock, Thursday, August 4, 1938, advertised in the press of the 
State in accordance with law and notices of said hearing issued indi- 
vidually to all the franchise truck operators operating in the area east 
of Greensboro, Raleigh and Sanford where Alcoholic Beverage Control 
Stores are located. Hearing was held as advertised and applicant was 
represented by H. G. Connor, Attorney, of Wilson. 

It appears that since the East Carolina Warehouse Association, 
Incorporated, established its warehouse in the City of Wilson, a number 
of additional stores have been opened in several parts of the State 
where it is more convenient to supply them from pool cars than it is 
from the warehouse in Wilson and these beverages pooled in cars and 
shipped to other points within the State outside of Wilson are not 
warehoused, but distribution is made from the cars. The applicant 
showed evidence from the agents of a number of distillers and from 
representatives of Alcoholic Beverage Control Stores to the effect that 
distribution from pool cars was desired. Applicant expects to qualify 
as interstate common carrier and believes that its classification as 
common carrier will enhance its interests as an interstate carrier in 
handling shipments in interstate commerce so as to comply with 
administrative ruling November 7 of the Interstate Commerce Com- 
mission, dated August 19, 1936: "If a common carrier operating wholly 
intrastate in interstate commerce within a single State procures a 
certificate of convenience and necessity from the board of that State 
authorizing the extension, such operation, as extended being wholly 
within such State, no proceedings other than registration with the 
I. C. C. are required for such authority to be recognized as interstate 
authority." 

The application was opposed by Bass Bonded Trucks, Incorporated, 
Helms Motor Express, Fredrickson Motor Express, Capital Coast 
Express, Motor Transit Company and Stallings Transfer Service, and 
the protestants were represented by Attorney Norman Block, Greens- 
boro, N. C. The protestants presented evidence to show that other 
franchise carriers in the territory transported alcoholic beverages, 
particularly the Bass Bonded Trucks, Incorporated, of Tarboro, which 
presented evidence to the effect that it had handled for pool cars 
during the years 1936 and 1937 and up to July, 1938, a total of 105,233 
cases. Mr. Bass also testified that he warehoused such beverages at 
Tarboro for a number of manufacturers. Witnesses for several other 
carriers testified that they had from time to time transported shipments 
of such beverages, but that they were in less truck load lots of v.liich 
there was little movement. Bass Bonded Trucks, Incorporated, is 
qualified as an interstate carrier both intra and interstate and has been 
handling from warehouse in Tarboro such contract shipments as were 
offered him and using a 1935 Ford truck with 11,000 pounds capacity 
license. 

Shipments warehoused subject to delivery to any point v/here the 
manufacturer may in the future designate would take the nature of 



134 N. C. Utilities Commission 

an intrastate shipment and may be distributed under contract without 
obtaining a franchise from this office, but it appears that in the case 
of pool car shipments handled in interstate commerce where the 
distribution is known by the manufacturing shipper at the time the 
several consignments are placed in a car for a common destination 
and then to be distributed to the consignees, it is subject to the rules 
governing interstate commerce and any motor vehicle carrier con- 
necting with the interstate carrier or participating in the interstate 
movement will be required to conform to such requirements as the 
Interstate Commerce Commission has laid down for such transpor- 
tation. (See Buckingham Transportation Company vs. Black Hills 
Transportation Company, decided August 13, 1938, and reported in 
281 N. W. 94.) 

In the above case the South Dakota Commission held that "Where 
merchandise is collected by a forwarding company at a point in one 
State and sent by rail in pool cars to a consignee at a point in another 
State, the transportation of the merchandise by truck from the point 
of destination of the pool car to other destinations within the State, 
where the latter movement does not cross the State lines, is intrastate 
transportation. The subject matter moves from one point in the State 
to another point in the State after the bulk or car load is broken 
and divided." 

The Supreme Court of South Dakota in the most recent decision 
on this subject after an exhaustive study of the decisions of the United 
States Supreme Court reversed the South Carolina Commission in the 
above case and said that such distribution from pool cars was "part 
of a continuous movement in interstate commerce." 

The Interstate Commerce Commission, in 6, MCC 59 (Barry 
Contract Carrier Application), said with reference to distribution of 
pool car shipments: "A motor carrier engaged in the distribution of 
pool car shipments transported by rail from interstate origins performs 
a part of the through interstate transportation when the intention of 
the shippers is that final destination of the individual shipments shall 
be at points other than the rail destination, b/1 on the pool cars con- 
signed to the motor carrier are accompanied by individual invoices 
containing directions as to where the various shipments are to be 
transported, and the commodities when received at the rail destination 
by the motor carrier are not stored and do not come to rest at that 
point, but remain in the motor carrier's warehouse only until trucks 
are available and it is convenient for him to continue the through 
movement and deliver the commodities to the persons to whom they 
are destined." 

This is the first application filed with me for a restricted franchise 
certificate to be confined to one commodity. The law under which 
this authority is sought was added in the form of an amendment by 
the 1937 General Assembly, and was sponsored by a desire for a 
selected service to transport such articles as cotton in bale, tobacco, 
furniture, and manufactured textiles, of which there is a great volume 
of each moving within this State, and out of a desire of the shipper for 
a dependable and quick full load service from origin to destination, 



Decisions and Adjustments of Complaints 135 

special equipment has been devised for the most convenient, com- 
partments which are capable of being locked at origin to be opened 
only by the consignee. 

This apparently suggests a solution to the transportation problem 
by motor vehicle especially where it is necessary to route more than 
one carrier over the same highway, because it is often the case that a 
common carrier which has preempted the territory for the transpor- 
tation of general commodities is not equipped to provide the specific 
service desired by the shipper for a specific commodity. 

Alcoholic beverages to which this applicant proposes to confine 
his operation, are no doubt a class of articles which requires a special 
service and its safe transportation,- since the advent of A. B. C. Stores, 
must be provided. 

The applicant asked for authority to ship from any pooled car 
without regard to where it is located, but from all evidence presented, 
it appears that the granting of the application for distribution of pool 
cars from Raleigh, Durham and Wilson will give the applicant an 
opportunity to serve shippers who use the Southern, Seaboard, Norfolk- 
Western and Atlantic Coast Line Railroads and at the same time will 
not interfere with the distribution from such cars that may be placed 
at other advantage points for other carriers in the same general terri- 
tory, and the applicant has shown conclusively the necessity for the 
service which is sought in this case and it is found that the granting 
of ^aid application will provide a public convenience and necessity 
which is not now available, 

Therefore, it is ordered that the petition be granted and that 
when the applicant otherwise complies with the statute by filing Public 
Liability and Property Damage Insurance and evidence of Cargo 
Insurance, that certificate shall issue, giving him the right to transport 
alcoholic beverages from pool cars at Raleigh, Durham and Wilson, 
N. C, to such points within the State where there are existing Alcoholic 
Beverage Stores at the time of this Order. 

This the 28th day of September, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities CoTnmissionei'. 

Docket No. 1363. 

EAST CAROLINA TRUCKING ASSOCIATION, INCORPORATED, 
FOR A FRANCHISE CERTIFICATE TO OPERATE AS A RE- 
STRICTED COMMON CARRIER. 

Order Overruling Exceptions 
This matter again comes before the Commission upon Exceptions 
filed, October 14th, 1938, by Mr. Norman Block, attorney of record 
for Bass Bonded Trucks, Helms Motor Express, Fredrickson Motor 
Express, Capital Coast Express, Motor Transit Company and Stallings 
Transfer Service, protestants in the above entitled matter, to the order 
of this Commission, dated September 28th, 1938, and received by said 
attorney for said respondents on October 5, 1938. 



136 N. C. Utilities Commission 

The respondents' Exceptions, considered along with the brief of the 
respondents filed in this cause, are based upon two main contentions, 
wherein the respondents except, first, to the finding by this Commission 
in its order that public convenience and necessity had been shown, 
and second, to the interpretation placed upon Section 3 (f). Chapter 
136, Public Laws 1927, and amendments thereto. 

In Exception I of Exceptions In Law, it is argued that the testimony 
adduced at the hearing did not warrant any conclusion of law in 
respect to the existence of public convenience and necessity for the 
granting of the instant application. 

In the respondents' brief, which we are asked to consider along 
with the Exceptions filed, it is argued that the burden of proof is upon 
the applicant; that both necessity and convenience must be found; 
and that a mere showing of convenience to a small group, or a few 
individuals, as distinguished from the public at large, is not sufficient. 
With these contentions we are in full accord, with the exception that, 
in our opinion, it is not necessary to find that the public at large needs 
the service, but only that part of the public which it is intended to 
serve. 

The applicant in this case does not propose to serve the general 
public. His application is made under Section 1 (t) of Chapter 247, 
of the Public Laws of 1937, which Section provides for the granting 
of restricted common carrier franchises to transport property of 
particular kind or commodity, whether over regular or irregular 
routes. The general public is not interested in how alcoholic beverages 
are transported from pool cars to A. B. C. Stores. The only part of 
the public who is interested in this transportation are those who sell 
the whiskey and the State authorities who purchase it. They are 
both vitally interested in the manner of its transportation. There was 
evidence that the shippers of alcoholic beverages believed that the 
applicant would provide a much needed service, which would promote 
the convenience of the public interested, and this evidence, together 
with the hazards of transporting alcoholic beverages, of which there 
was also some evidence and of which this Commission takes judicial 
notice, is sufficient, in the opinion of this Commission, to justify the 
finding that there is a need and necessity for a carrier particularly 
charged with the transporting and safe-guarding in transit alcoholic 
beverages alone, from the points set out in the order. 

The second main contention of the respondents appears in Exception 
III, under the heading ''Exceptions in Law." The respondents take the 
position, both in this Exception and in the brief, that even if the 
finding of public convenience and necessity is justified, that under 
Section 3 (f). Chapter 136, Public Laws of 1927, and amendments 
thereto, no franchise could be issued to the applicant until after the 
present carriers have been given thirty days' notice and failed to 
provide the service required by the Commission. 

The interpretation of this Section by the attorney for the respond- 
ents is in practical accord with the ruling of this Commission in 
Atlantic Greyhound Lines vs. Carolina Coach Company, dated August 



Decisions and Adjustments of Complaints 137 

30, 1935, and published in the first Report of the Utilities Commission 
for the biennial period 1935-1936, to which especial attention is 
directed to pages 95 and 96 of said Report. 

The provision in the Section above quoted, that when public con- 
venience and necessity has been established that the present operator 
shall be given thirty days in which to make the service satisfactory, 
does not aid the respondents in this case, for the reason that the 
applicant is not applying for a general common carrier franchise over 
the routes of the respondents, but the application in question was 
made under Section 1, (t), Chapter 247 of the Public Laws of 1937, 
which provides for restricted common carrier franchises limiting the 
carrier's operation to a particular class, kind or commodity over 
regular or irregular routes. There is nothing in the application, or in 
the statute, which requires the applicant to operate over the routes of 
any of the respondents, or indicates that said operation will be over 
the routes of any of the respondents. The application asks, and the 
order of this Commission grants, permission to the applicant to trans- 
port alcoholic beverages from pool cars in Durham, Raleigh and 
Wilson to various points in the State where there are now located 
A. B. C. Stores. The highways to be used are not defined and under 
the law are not required to be defined. Furthermore, Sub-section (t) 
of the 1937 Act was enacted by the General Assembly several years 
subsequent to Sub-section (f), supra, and the authorization therein 
given to this Commission to grant restricted franchises for special 
commodities over regular and irregular routes, clearly shows that 
these restricted franchises were to be granted when public need and 
necessity is shown, whether they traverse the routes of present common 
carrier or not. The purpose of this Act was to make it possible to 
supply a need for service which is not given by a general common 
carrier. Incidentally, it is observed that the respondents' Bass Bonded 
Trucks is not an intrastate common carrier and holds no franchise 
from this Commission. 

The Commission has considered each and all of the respondents' 
Exceptions, and, as requested, has reviewed the respondents' brief, 
and finds no reason why its order of September 28th, 1938, should be 
reversed or amended. 

Wherefore, each and all of the Exceptions filed by the respondents 
are hereby disallowed, denied and overruled. 

This the 19th day of October, 1938. 

(Signed) Stanley Winborne, 
Docket No. 1363. Utilities Commissioner. 

PETITION OF EAST COAST STAGES, INC., AND ATLANTIC GREY- 
HOUND LINES TO TRANSFER FRANCHISE CERTIFICATES, 
CONTRACTS AND ASSETS TO ATLANTIC GREYHOUND COR- 
PORATION. 

Order 

This cause arises upon the application of the East Coast Stages, 
Inc., and the Atlantic Greyhound Lines to transfer their franchise 



138 N. C. Utilities Commission 

certificates, contracts and assets to the Atlantic Greyhound Corpora- 
tion, a Virginia corporation. 

Hearing was set for December 16, 1936, and notice of same was 
published in the daily papers of Asheville, Raleigh, Charlotte, Greens- 
boro and Winston-Salem, as is evidenced by publishers' certificates 
on file. 

The day and hour of hearing having arrived, no opposition to said 
application appeared. 

The operation of both petitioners are well known to this Commis- 
sion. The operation of the East Coast Stages, Inc., has been leased to 
the Atlantic Greyhound Lines for some time and it is thought that 
the granting of this application will both simplify the operation and 
redound to the convenience of the public in improved service; there- 
fore, it is 

Ordered, That the petition be granted and that franchise certificates 
Nos. 375, now standing in the name of East Coast Stages, Inc., and 
397, now standing in the name of the Atlantic Greyhound Lines, and 
any amendments to either, and all contracts and assets that by law 
require the approval of this Commission before sale, be transferred to 
Atlantic Greyhound Corporation, and it is further 

Ordered, That this order shall be effective December 31st, 1936; 
and it is further 

Ordered, That the approval of this transfer as herein set forth 
shall not be construed to prejudice the legal right of any person to 
any claim that may be adjudicated in accordance with the laws of this 
State made and provided. 

Done in the City of Raleigh, N. C, this December 16, 1936. 

Stanley Winborne, 
Attest: Utilities Commissioner. 

R. O. Self, Chief Clerk. 
Docket No. 901. 

APPLICATION OF ENGELHARD-WASHINGTON BUS COMPANY 
TO EXTEND BUS SERVICE TO BAYVIEW OVER HIGHWAY 
NO. 92. 

Order 

This cause arises upon the application of the Engelhard-Washington 
Bus Company, S. M. Gibbs, Owner. This application was received 
April 13, 1937, and set for hearing on Tuesday, May 4, 1937, and heard 
on that date. The petitioner was represented at the hearing by Mrs. 
S. M. Gibbs, and no opposition appeared. 

The petitioner has been a bus operator for a number of years over 
Highway No. 91 between Washington, N. C, and Engelhard, N. C, via 
Belhaven and Swan Quarter and he now proposes to operate from 
the intersection of No. 92 and No. 91, ten miles northwest of Bay view, 
into Bayview, a summer resort and a place that has a great many 
year-round residents, and it is contemplated that the hotel at Bayview 
will be kept open the year round and that sufficient business will be 



Decisions and Adjustments of Complaints 139 

carried on in that community to warrant the operation of year-round 
bus service. Therefore, it appears that there is a necessity for this 
operation and the granting of same will be a convenience to the 
people in that section. Therefore, it is 

Ordered that the petition be granted and that Certificate No. 401 
be amended to include Highway No. 92 from the intersection of High- 
way No. 91 to Bay view and community. 

This the 4th day of May, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 94. 

PETITION K. HERMAN FULK FOR PASSENGER BUS FRANCHISE 
TO OPERATE FROM FIVE POINTS IN THE CITY OF HIGH 
POINT OVER CERTAIN STREETS WITHIN THE SAID CITY AND 
OUTSIDE THE SAID CITY TO THE MUNICIPAL LAKE. 

Order 

This cause arises upon the application of K. Herman Fulk, operator 
of passenger bus line beginning at Five Points intersection East Lex- 
ington Avenue and Montlieu Avenue on Eastern Edge of High Point, 
North Carolina, on Highway No. 10 approximately two miles to High 
Point Municipal Lake and return. This application was filed June 8, 
1936, and was heard June 23, 1936. At the conclusion of the hearing, 
the petitioner was advised by the Commissioner: "We will give you 
the franchise and we will work out the best way of arranging it. I 
think we will put it up to the City of High Point to regulate you. We 
will let you hear from us. You might talk to Mr. Self and find out 
about your insurance and what you will have to do." 

It will be seen from the above statement at the conclusion of the 
hearing, that this application presented some obstacles which had not 
been solved at that time. The evidence shows that the city needed a 
service to the Municipal Lake that would provide a convenience which 
it has not enjoyed. Therefore, it is evident that a transportation 
service which circulates in the city should be permitted to extend its 
service to the Municipal Lake. The Carolina Coach Company runs a 
service through the city by the lake, but it cannot provide the class 
of service that is desired at certain times during the week and during 
certain seasons when the lake is open for use. Therefore, they with- 
drew any objections to the applicants operating over the two miles 
outside of the city on its franchised route. 

The Bus Law, Chapter 136, Public Laws of 1927, and amendments 
thereto, has never been construed to be applicable to the class of 
service which the petitioner proposes to operate under this application; 
therefore, it is deemed expedient to permit the City of High Point 
to pass upon the qualifications of the operator who renders service 
within the city and from the city to the lake, and, this Commission 
feels that it should waive any right it may have under the status to 
impose any additional requirements because of the exclusive municipal 



140 N. C. Utilities Commission 

service the applicant proposes to give, except that the city require 
applicant to file with it ample public liability and property damage 
insurance. Therefore, it is 

Ordered that the petition be dismissed and that a copy of this 
order be sent to the City of High Point with the recommendation that 
it require such safety measures of the applicant as it deems expedient 
under the circumstances. 

This the 4th day of May, 1937. 

By order of the Commissioner: 

Stanley Winborne, 
R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 754. 

APPLICATION OF WAYNE GUNTER FOR PASSENGER MOTOR 
VEHICLE FRANCHISE BETWEEN ASHEVILLE AND MARS HILL 
VIA WEAVERVILLE AND FORKS OF IVEY. 

Order 

This cause coming on to be heard upon the petition of Wayne 
Gunter of Weaverville, N. C, operating as Wayne Gunter, Mail and 
Bus Line. Petition was filed in this office on November 10, 1936, and 
was advertised in the press of the State as provided by law after being 
set down for hearing on Wednesday, November 18, 1936, at 11 o'clock 
A. M. in the office of the Commission in Raleigh. 

Evidence was presented which showed the petitioner had a contract 
to carry mail between the points applied for and that he desired to 
carry passengers in addition for the convenience of the traveling 
public. The Commission had a previous application which has been 
heard and approved which provides a service between Mars Hill and 
Asheville, over the same route where this applicant now desires to 
operate. The ET&WNC Transportation Company, operating between 
Johnson City, Tenn., and Asheville, N. C, serves that part of the same 
highway between Forks of Ivey and Asheville. 

It appears that the petitioner lives in Weaverville and that he 
either purposes to or can arrange his schedule so that his service is 
mainly between Weaverville and Mars Hill and particularly at a time 
of day when there is little competition between his schedules and the 
schedules operated by the Mars Hill Bus Line between Mars Hill and 
Weaverville or between Forks of Ivey and Weaverville. The only 
evidence in behalf of this petitioner's operation was presented by the 
petitioner himself and the principal complaint against this petition 
was to the effect that if this petitioner should be granted the right to 
operate that he would cut the rates for such transportation to a point 
where it would destroy any other legitimate operation on the line and 
the only apparent convenience and necessity that would be served by 
this petitioner was presented with the evidence which showed that he 
carried a few students from Weaverville to Mars Hill early in the 
morning and back in the evening. 

Therefore, it is ordered, That the petitioner be granted the right 



Decisions and Adjustments of Complaints 141 

to carry passengers between Weaverville and Mars Hill and return, 
but not between Weaverville and Asheville; and that certificate shall 
issue when petitioner files insurance and motor vehicle descriptions 
for authority to purchase tags; and it is 

Further ordered. That no rights granted by this Order shall be 
subject to sale or application for sale until the provisions of the issu- 
ance of certificate has been complied with as above stated; and it is 

Further ordered. That compliance with this Order for the issuance 
of certificate shall be made within thirty (30) days from the date of 
this Order; otherwise same shall be void; and it is 

Further ordered. That petitioner shall charge the same rates as 
may be approved by the Commissioner for the Mars Hill Bus Line to 
charge between Mars Hill and Weaverville. 

This the 30th day of December, 1936. 

By order of the Commissioner: 

(S) Stanley Winborne, 
(S) R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 885. 

APPLICATION OF THE M. & M. MOTOR EXPRESS FOR A FRAN- 
CHISE CERTIFICATE BETWEEN NORTH WILKESBORO AND 
LENOIR VIA HIGHWAY NO. 18; LENOIR TO HICKORY VIA U. S. 
HIGHWAY 321; HICKORY TO NORTH WILKESBORO VIA CON- 
OVER AND TAYLORSVILLE OVER HIGHWAY U. S. NO. 64 AND 
70 AND STATE HIGHWAY NO. 16. 

Order 

This cause arises upon the petition of the M. & M. Motor Express 
of North Wilkesboro for a franchise certificate between North Wilkes- 
boro and Lenoir via Highway No. 18; Lenoir to Hickory via U. S. 
Highway 321; Hickory to North Wilkesboro via Conover and Taylors- 
ville over Highway U. S. 64 and 70 and State Highway No. 16. 

Evidence was presented which showed that the application was 
published in the press of the State, in accordance with the require- 
ments of the law. Hearing was held on Thursday, October 29, 1936; 
but, because of repairs being made to the highway in question, dispo- 
sition of the case has been postponed until recently. In the meantime, 
other applications have been filed and denied because the M. & M. 
Motor Express has been a long-time operator in that vicinity and has 
an established custom; and it is thought where an additional short 
line, like the route between North Wilkesboro and Lenoir, is to be 
operated that it should be operated by one of the regular, established 
lines in the community. 

The petitioner had numerous letters and petitions filed by shippers 
in the vicinity affected; and from the evidence which was presented, 
it is apparent that the carrier applicant has the good-will of the citizens 
of the community. It is very difficult to ascertain from the evidence 
presented whether or not the business on so short a line will produce 
enough revenue to permit its operation; therefore, the necessity is for 



142 N. C. Utilities Commission 

such short lines to be operated by carriers having a sufficient operation 
to guarantee such short-line service. 

It was developed at the hearing that the Commission could not 
grant the application as asked for and the petitioner was allowed to 
amend the application so as to include only that part of Highway 
No. 18 between Wilkesboro and Lenoir. Therefore, it is 

Ordered that the petition be granted for that part of the operation 
over Highway No. 18 between Wilkesboro and Lenoir and that the 
remainder of the petition be denied. 

It is further ordered, since the petitioner was an operator under 
a franchise certificate, that certificate now being in force, No. 413; 
that the certificate be amended to include that part of the above route 
granted in this order when the petitioner has returned to this office 
the said certificate for amendment. 

This 14th day of July, 1937. 

By order of the Commissioner : Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 271. 

APPLICATION OF w! L. MARSHALL, JR., FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS MOTOR VEHICLE PASSENGER 
CARRIER FROM WADESBORO TO NEW LONDON VIA ALBE- 
MARLE OVER ROUTE NO. 60 (NOW ROUTE NO. 52); FROM 
NEW LONDON TO INTERSECTION OF ROUTE NO. 62 AND 
ROUTE NO. 109, THENCE OVER ROUTE NO. 109 TO WINSTON- 
SALEM VIA THOMASVILLE. 

Order 

This cause came on for hearing and was heard in the Hearing Room 
of the Utilities Commission in the City of Raleigh before Stanley Win- 
borne, Utilities Commissioner, and Frank W. Hanft, Associate Com- 
missioner, beginning on January 4, 1938, at 10 o'clock A. M., and after 
continuing one day the hearing was adjourned and again resumed on 
March 3, 1938. The application was originally filed on March 30, 1935, 
and continued and renewed and again continued from time to time, 
without objection, for the reason that the road over which franchise 
was applied for was under construction. 

When the case was called for hearing, the applicant, W. L. Marshall, 
Jr., stated to the Commission that if his application were granted, it 
was the intention to form a corporation under the laws of the State 
of North Carolina to be known as the Piedmont Coach Company, and 
that with the permission of the Commission, the franchise, if granted, 
would be transferred and assigned to the Piedmont Coach Company, 
or issued to the Piedmont Coach Company direct, upon a proper com- 
pliance by said Piedmont Coach Company with all the requirements 
and regulations of the Commission. 

The Atlantic Greyhound Corporation, a Virginia corporation, oper- 
ating in North Carolina and other states, appeared at the hearing and 
opposed the granting of the franchise to the applicant over that part 



Decisions and Adjustments of Complaints 143 

of the route asked for from Thomasville to Winston-Salem, taking the 
position that if the Commission found that public convenience and 
necessity justified the granting of the franchise, that the W. L. Mar- 
shall, Jr. application should only be granted from Wadesboro to 
Thomasville, and that the Atlantic Greyhound Corporation should be 
given a franchise from Winston-Salem to Thomasville to connect at 
Thomasville with the schedules operated by the applicant. 

The applicant was represented by the following attorneys: 

Honorable L. P. McLendon, Greensboro, N. C. 

Honorable H. P. Taylor, Wadesboro, N. C. 

Honorable Banks D. Thomas, Wadesboro, N. C. 
The Atlantic Greyhound Corporation was represented by the 
following attorneys: 

Honorable J. C. B. Ehringhaus, Raleigh, N. C. 

Honorable I. M. Bailey, Raleigh, N. C. 

The Commission finds that the pleadings and evidence adduced at 
the hearing raised two issues: 

First. Does public convenience and necessity require the granting 
of a franchise for the carrying of passengers from Wadesboro to Wins- 
ton-Salem over the routes set out in the application? 

Second. If so, should the franchise be given to the applicant all 
the way from Wadesboro to Winston-Salem, or should the applicant's 
operations be limited to that part of the route from Wadesboro to 
Thomasville and the Atlantic Greyhound Corporation be given a certifi- 
cate to operate from Thomasville to Winston-Salem connecting with 
the applicant's line at Thomasville? 

In considering the first issue, the Commission finds that there is a 
veritable plethora of testimony, from all points along the proposed 
route from Wadesboro to Winston-Salem, establishing conclusively the 
need for the service. Winston-Salem is one of the largest cities in the 
State and is the business and shopping center for a wide territory, 
extending as far south along the proposed route as Wadesboro and 
beyond. Some of the towns between Wadesboro and Thomasville at 
the present time have no bus service whatever, and those towns which 
now have bus service have access to Winston-Salem only by circuitous 
routes, which are so inconvenient to the public that the present service 
is little used and private cars resorted to. That part of the proposed 
route between Thomasville and Winston-Salem, a distance of twenty 
miles, is thickly settled and many of the people residing therein com- 
mute between their homes and Winston-Salem daily, and it is believed 
a large number of them, who now drive their own cars or ride with 
their neighbors, would use the proposed bus service. The Commission 
is, therefore, of the opinion, and so finds, that public convenience and 
necessity has been shown for the proposed service all the way from 
Wadesboro to Winston-Salem over the route as set out in the appli- 
cation. 

In passing upon the second issue, as to whether the Atlantic Grey- 
hound Corporation should be given the franchise from Thomasville to 
Winston-Salem, the Commission has carefully considered the conten- 
tions of the Atlantic Greyhound Corporation that it now serves Thorn- 



144 N. C. Utilities Commission 

asville by connection with the Carolina Coach Company, both by way 
of Lexington and by way of High Point; that to grant to the applicant 
a franchise from Thomasville to Winston-Salem would divert the 
business of Thomasville from the Greyhound Corporation to the new 
and more direct route, and that the triangular territory between High 
Point and Lexington with Winston-Salem at the focal point, is the 
territory of the Atlantic Greyhound Corporation and should not be 
invaded by a competing line. 

It was further contended by the Atlantic Greyhound Corporation 
that the establishment of this new route from Winston-Salem to Wades- 
boro would make possible a competing passenger service south of 
Wadesboro by connections with the Queen City Coach Company, which 
would still further divert business from the Greyhound Corporation, 
and that if the applicant were allowed to run into the Winston-Salem 
station, the diversion would be greater, for the reason that the Grey- 
hound Corporation which now controls the Winston-Salem station, 
would not have the sole control of the routing of passengers from 
Winston-Salem to points south. 

The applicant contended that to require passengers to change at 
Thomasville would be a great inconvenience to the public, and thereby 
lessen the patronage of the line, and that since the territory between 
Thomasville and Winston-Salem was the most densely populated that 
to take from the applicant the revenue which it would receive from 
this territory adjacent to Winston-Salem would tend to make unprofit- 
able the operation of the line from Wadesboro to Thomasville, result- 
ing possibly in depriving the people between Wadesboro and Thomas- 
ville of a much needed service. 

Mr. F. H. Sullivan, Comptroller of the Atlantic Greyhound Corpora- 
tion, testified that the maximum diversion of business from the Atlantic 
Greyhound Corporation to the proposed line, in his opinion, from a 
calculation of ticket sales for two representative months, would amount 
to $3,002.40 per year. He also gave testimony, based upon his belief 
as to what might be the diversion of business to points south of 
Wadesboro, by reason of a connection at that point between the pro- 
posed line and the Queen City Coach Company. As to the amount of 
this diversion to southern points, the witness, naturally, had no definite 
information but merely gave his idea of what might happen. Numerous 
other witnesses testified for and against the breaking of the continuous 
service at Thomasville, all of which has been considered by the 
Commission. 

The Commission is satisfied that by the operation of the new line 
from Wadesboro through Thomasville to Winston-Salem, some business 
will be diverted from the Atlantic Greyhound Corporation, due to the 
fact that it will be a more direct route, without change at either Lex- 
ington or High Point, but it does not believe that all of the business 
from Thomasville to Winston-Salem will be diverted, because some of 
the schedules by High Point and Lexington will be at more convenient 
hours to some of the people. It further believes that new business will 
be created by the operation of the new line, which now moves by 



Decisions and Adjustments of Complaints 145 

private cars, and which at the present time neither the Carolina Coach 
Company nor the Atlantic Greyhound Corporation receive. 

Since the hearing in this case, the Commission has heard another 
case, in which the Atlantic Greyhound Corporation applied for a 
franchise from Lexington to Raleigh, and in that case the Atlantic 
Greyhound Corporation answered fully their argument as to the 
diversion of traffic, and as to the right to preempted territory which 
it made in the instant case. 

The Commission has always held, and is still of the opinion, that 
no utility has a right to any territory paramount to the rights of the 
public, and where it is shown that public convenience and necessity 
demands a new service, the new service will be granted, provided the 
new service will not so substantially deplete the revenues of the 
existing service as to so cripple the existing service to the extent that 
it will inconvenience the people now served by the existing service 
more than it will convenience the people to be served by the new 
service. 

Upon a consideration of all the facts in the case, it is the opinion of 
this Commission that public convenience and necessity justifies the 
operation of the new service all the way through from Wadesboro to 
Winston-Salem. 

Wherefore it is ordered, that a Certificate of Convenience and 
Necessity be granted to W. L. Marshall, Jr. to operate motor vehicle 
passenger service from Wadesboro through Albemarle, New London, 
Denton and Thomasville to Winston-Salem and return, over the high- 
ways as set out in said petition, and upon the schedules filed with this 
Commission at the hearing by the applicant, until said schedules are 
changed by an order of this Commission. 

It is further ordered, that the said W. L. Marshall, Jr. may trans- 
fer and assign his rights under this order to the Piedmont Coach Com- 
pany, Inc., if the set up of said Corporation meets the approval of 
this Commission, and the Corporation fully complies with all the 
regulations and requirements of the Commission. 

It is further ordered, that the operation granted in this order 
shall be begun within thirty days from date hereof. 

This the 7th day of April, 1938. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
(Signed) Frank W. Hanft, 

Associate Commissioner. 

Associate Commissioner Fred L. Seely did not participate in this 
hearing. 

Docket No. 353. 



146 N. C. Utilities Commission 

APPLICATION OF W. L. MARSHALL, JR., FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS MOTOR VEHICLE PASSENGER 
CARRIER FROM WADESBORO TO NEW LONDON VIA ALBE- 
MARLE OVER ROUTE NO. 60 (NOW ROUTE NO. 52); FROM 
NEW LONDON TO INTERSECTION OF ROUTE NO. 62 AND 
ROUTE NO. 109, THENCE OVER ROUTE NO. 109 TO WINSTON- 
SALEM VIA THOMASVILLE. 

Order Overruling Exceptions 

This cause again conies before the Utilities Commission upon 
exceptions filed by the Atlantic Greyhound Corporation, protestant 
in the above entitled cause and applicant for right to operate passenger 
bus service betv^een Thomasville and Winston-Salem, to the order of 
this Commission made and entered on the 7th day of April, 1938. 

The said Atlantic Greyhound Corporation presents six (6) excep- 
tions to the matters of lav^, and six (6) exceptions to the findings of 
fact by this Commission in its said order. 

This Commission has carefully considered each and all of the 
exceptions filed and finds that no nev^ argument or reason is presented 
by said exceptions, v^hich was not presented and/or fully considered 
by this Commission in reaching the decision, as set forth in its order of 
April 7th, 1938. 

Wherefore each and all of the tv^elve (12) exceptions filed by the 
protestant, the Atlantic Greyhound Corporation, are hereby overruled, 
disallowed and denied. 

This the 29th day of April, 1938. 

(Signed) Stanley Winborne, 



Commissioner. 



Docket No. 353. 



APPLICATION OF W. L. MARSHALL, JR., FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS MOTOR VEHICLE PASSENGER 
CARRIER FROM WADESBORO TO NEW LONDON VIA ALBE- 
MARLE OVER ROUTE NO. 60 (NEW ROUTE NO. 52); FROM 
NEW LONDON TO INTERSECTION OF ROUTE NO. 62 AND 
ROUTE NO. 109, THENCE OVER ROUTE NO. 109 TO WINSTON- 
SALEM VIA THOMASVILLE. 

Order Amending Order 

This cause arises upon the discovery that the order of April 7th, 
1938 did not take into consideration the fact that the applicant in this 
case is a new operator and had to purchase equipment and otherwise 
get himself in the proper status to comply with the law, so as to obtain 
the issuance of a Certificate. 

Therefore, it is ordered that the last paragraph in the order of 
April 7, 1938 be amended to read as follows: 

"It is further ordered that the applicant in this case shall have 30 
days to file equipment specifications, insurance and obtain tickets to 
be placed in the several stations served by it, and upon the filing of 
such equipment specifications and insurance, 



Decisions and Adjustments of Complaints 147 

It is further ordered that Certificate shall issue and operation 
begin within the 30 days specified by law." 

This amendment shall be effective and the time named herein begin 
to run upon April 21, 1938, the date on which service of the order 
referred to herein was made upon the applicant. 

This the 11th day of May, 1938. 

Stanley Winborne, 

Utilities Commissioner. 
R. O. Self, Chief Clerk. 
Docket No. 353. 

APPLICATION OF MARS HILL BUS LINE FOR FRANCHISE CER- 
TIFICATE AUTHORIZING THE TRANSPORTATION OF PASSEN- 
GERS BETWEEN ASHEVILLE UNION BUS STATION AND MARS 
HILL, N. C. OVER HIGHWAYS NOS. 23 AND 36. 

Order 

This cause coming on to be heard upon the petition of the Mars Hill 
Bus Line, A. E. Carter and W. L. Edge, owners. This petition was filed 
on October 9, 1936 and advertised in the press of the State as provided 
by law after being set down for hearing on Tuesday, November 3, 1936 
at 11 o'clock A.M. in the office of the Commission in Raleigh. Some 
postponements had to be made of the hearing date. The case was finally 
heard on November 18, 1936. Petitioner Carter appeared at the hearing, 
represented by Attorney George Pennell of Asheville. 

The application calls for highway over which the ET&WNC Trans- 
portation Company of Johnson City, Tenn. holds a franchise and if 
granted, both operators would be required to operate from Forks of 
Ivey to Asheville on the same highway. The petitioner operated under 
franchise at one time prior to the depression but voluntarily stopped 
operating as a franchise operator because of his being unable to obtain 
insurance at a rate which would permit him to operate. He was per- 
mitted to cease such operation but continued to operate as a for hire 
carrier during the time which has elapsed since his ceasing to be a 
franchise carrier. Evidence was presented which showed that the 
people of Mars Hill had confidence in the petitioners and felt that if 
a bus service were operated from that community that the petitioner 
in this case would be the proper one to do so. The ET&WNC appeared 
by attorney and stated that it had no objection to the operation for 
which the petitioner in this case is applying and stated that the relation 
between the two operators in the past had been very satisfactory and 
that they did not anticipate any trouble in the future. 

After hearing the case, it is evident that public convenience and 
necessity will be served by the granting of this petition. 

Therefore, it is ordered. That the petition be granted and that a 
certificate issue upon the petitioner's complying with the law by filing 
insurance and equipment description. 

It is further ordered, That the above provision requiring the filing 
of insurance and otherwise providing for the issue of the certificate 



148 N. C. Utilities Commission 

shall be complied with within thirty (30) days from the date of issu- 
ance of this Order; otherwise, the same shall be void; and it is 

Further ordered, That no sale or application for sale of any rights 
granted in this Order shall be permitted until after said certificate shall 
issue as above provided. 



Stanley Winborne, 

Utilities Commissioner. 



This December 30th, 1936. 

By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 856. 



APPLICATION OF MOUNT AIRY TRANSPORTATION COMPANY, 
INC. FOR FRANCHISE CERTIFICATE TO OPERATE AS MOTOR 
VEHICLE CARRIER IN MOUNT AIRY AND SUBURBS. MOUNT 
AIRY TO TOAST. TOAST TO MOUNT AIRY-DOBSON HIGHWAY. 
MOUNT AIRY TO BANNERTOWN. BANNERTOWN TO SHEL- 
TONTOWN. MOUNT AIRY TO QUARRY. MOUNT AIRY TO 
SALEM COMMUNITY. 

Postponement of Hearing 

This matter being called for hearing and the petitioner having 
appeared ready for trial, but preliminary to the introduction of the 
evidence showing convenience and necessity the matter was discussed 
between the petitioner and the Commission; and it appearing to the 
Commission that the nature of the petitioner's operation was only 
urban and suburban, running short distances outside of the town, and 
largely in the nature of a taxi operation; and that the requirements 
for a franchise operator would, under the present conditions, be so 
burdensome as, in all probability, to prevent the petitioner from mak- 
ing operating expenses; it was, by mutual agreement between the 
Commission and the petitioner, decided that until the business could 
be built up and better condition shown to postpone the hearing on the 
petitioner's application indefinitely, without prejudice. 

When the case was called the applicant presented to, and filed with 
the Commission evidence of the due publication of the notice of the 
application as required by law. 

This 5th day of November, 1937. 

Stanley Winborne, 
Utilities Commissioner. 

Docket No. 1070. 



Decisions and Adjustments of Complaints 149 

PROTEST OF NORTH CAROLINA TRUCK OWNERS ASSOCIATION 
TO THE OPERATION INTER-CITY BY MOTOR VEHICLE OF THE 
SOUTHEASTERN EXPRESS COMPANY: 
And the 

APPLICATION OF SOUTHEASTERN EXPRESS COMPANY FOR 
FRANCHISE CERTIFICATES AUTHORIZING THE OPERATION 
OF MOTOR VEHICLES FOR THE TRANSPORTATION OF EX- 
PRESS MATTER OVER THE FOLLOWING ROUTES: (1) BE- 
TWEEN DURHAM AND CHAPEL HILL, OVER HIGHWAYS NOtS. 
55 AND 54; (2) FROM GASTONIA TO LINCOLNTON VIA U. S. 
HIGHWAY NO. 74 TO SHELBY THENCE TO LINCOLNTON VIA 
STATE HIGHWAY NO. 150, AND FROM LINCOLNTON TO GAS- 
TONIA VIA U. S. HIGHWAY NO. 321; (3) BETWEEN HIGH POINT 
AND ASHEBORO VIA RANDLEMAN OVER U. S. HIGHWAYS 
NOS. 311 AND 220; (4) BETWEEN LENOIR AND HICKORY OVER 
U. S. HIGHWAY NO. 321; (5) FROM ASHEVILLE TO ENKA OVER 
THE SAND HILL ROAD, AND FROM ENKA TO ASHEVILLE VIA 
U. S. HIGHWAYS NOS. 19 AND 23; AND (6) BETWEEN CHAR- 
LOTTE AND RUTHERFORDTON VIA U. S. HIGHWAY NO. 27 
FROM CHARLOTTE TO LINCOLNTON, THENCE OVER HIGH- 
WAY NO. 150 FROM LINCOLNTON TO SHELBY, THENCE TO 
RUTHERFORDTON VIA U. S. HIGHWAY NO. 74. 

Order 
This cause arises upon the protest of the North Carolina Truck 
Owners Association to the Southeastern Express Company's operating 
trucks in the transportation of express over the routes hereinafter set 
out, and 'All other similar operations in North Carolina put into effect 
since the effective date of the Motor Carrier Act of 1935." 

Copy, of Protest was served upon the Southeastern Express Com- 
pany on April 17, 1936, with request to file answer under the Commis- 
sion's Rules of Practice on or before April 29th, 1936. Answer was filed 
on April 28th, and in addition the Express Company filed on the same 
date an application, under the provisions of Chapter 136, Public Laws 
of 1927, and amendments thereto, for Franchise Certificates authorizing 
the operation of common carrier motor vehicles over the following 
routes : 

Durham to Chapel Hill 
State Highway No. 55 from Durham to Raleigh 
State Highway No. 54 from Junction of 55 and 54 to Chapel Hill. 
Return trip over the same route. 

Gastonia to Shelby 
Shelby to Lincolnton 

LiNCOLNTON TO GaSTONIA 

U. S. Highway No. 74 from Gastonia to Shelby. 
State Highway No. 150 from Shelby to Lincolnton. 
U. S. Highway No. 321 from Lincolnton to Gastonia. 

High Point to Randleman 

Randleman to Asheboro 
U. S. Highway Nos. 311 and 220 from High Point to Randleman. 
U. S. Highway No. 220 from Randleman to Asheboro. 
U. S. Highways Nos. 220 and 311 from Asheboro to Randleman and 
High Point. 



150 N. C, Utilities Commission 

Lenoir to Hickory 
U. S. Highway No. 321 from Lenoir to Hickory. 
Return trip same route. 

ASHEVILLE TO EnKA 

Sand Hill Road from Asheville to Enka. 
Return: Via U. S. Highways Nos. 19 and 20. 

Charlotte to Lincolnton 

LiNCOLNTON to ShELBY FOREST CiTY SpINDALE 

AND RuTHERFORDTON. 

U. S. Highway No. 27 Charlotte to Lincolnton. 
State Highway No. 150 Lincolnton to Shelby. 
U. S. Highway No. 74 Shelby to Rutherfordton. 
Return trip same route. 

The petition of the Express Company was served upon the attorneys 
for the North Carolina Truck Owners Association and answer filed 
June 4, 1936. Publicity was also given in the press of the State. 

The causes were consolidated into one case and are known as 
Docket No. 715. 

The North Carolina Truck Owners Association is a corporation 
organized under the laws of North Carolina with its principal office 
in Raleigh. The Southeastern Express Company is a corporation organ- 
ized under the laws of Alabama, but domesticated under the laws of 
North Carolina. 

Hearing was set for June 16, 1936, at 11 o'clock A. M. and all 
parties were notified. 

The day and hour for hearing having arrived, both petitioner and 
respondent were present or represented by attorneys as well as princi- 
pal officers of the respective corporations. 

The several applications hereinbefore enumerated were, without 
objection, consolidated and heard together. The present status of the 
operations of the Southeastern Express Company and the procedure 
to be followed at the hearing was outlined as follows: 

Commissioner Winborne: "We have a protest of the North Carolina 
Truck Owners Association against the operations of the Southeastern 
Express Company, which operations were undertaken not by reason of 
a franchise, but by sort of a permissive authority, and after the pro- 
test, Southeastern Express Company formally applied for franchise 
over these routes; that then brings the case before the Commission 
upon the application of the Southeastern Express Company for fran- 
chise, at which time the Truck Owners Association can enter protest 
and offer such testimony as they deem proper as to why franchise 
should not be granted. It seems to me that would be the proper pro- 
cedure to expedite the hearing. Since there are two actions, one by 
Southeastern Express Company and one by the North Carolina Truck 
Owners Association, the whole thing can be combined and heard at 
the same time. The Southeastern Express Company would have the 
burden of proceeding and showing public convenience and necessity." 

Before any evidence was offered, the Truck Owners Association, 
through its counsel, moved that the application of the Southeastern 
Express Company be dismissed, for want of jurisdiction of this Com- 
mission to entertain such application, for the reason that the Express 



Decisions and Adjustments of Complaints 151 

Company proposed to engage in interstate commerce and that the 
Interstate Commerce Commission was the only tribunal having juris- 
diction. 

In support of said motion, it was contended that while the motor 
franchise applied for was wholly intrastate, yet it was a continuation 
of and interlined with the rail movement and would handle both intern 
state and intrastate express in connection with the rail movement and, 
therefore, under Section 206 of the Motor Carrier Act, the entire 
movement when carried partly by rail and partly by truck between 
points in different states became an interstate movement, as much so 
as if carried by interlined and connecting motor carriers from one state 
to another. 

The question involved in this motion is one which is giving both 
the Interstate Commerce Commission and this Commission considera- 
ble concern. An application, similar to the one herein involved, made 
by the Southeastern Express Company covering the identical routes 
in question in this case, is now pending before the Interstate Commerce 
Commission. This Commission has been somewhat waiting upon the 
Interstate Commerce Commission's determination of the matter before 
issuing an order in this case, but, as it now appears that the order of 
the Interstate Commerce Commission may be long deferred, this Com- 
mission makes the following ruling on said motion: 

It is the opinion of this Commission that it has the authority to 
grant to the Southeastern Express Company a certificate to operate 
motor trucks in connection with and in continuation of its railway 
service, but that such certificate issued by this Commission will entitle 
the Express Company to transport by said trucks only express which 
originates and which is destined to points within North Carolina and 
that such a certificate issued by this Commission will give the Express 
Company no right to move by trucks any express which originates or 
is destined to points in other states whether such originating or destina- 
tion points are on either the railroad or truck line part of its service. 
Before a motor carrier can engage in both intrastate and interstate 
business, certificates must be granted by the Interstate Commerce 
Commission and the State Commission, hence, it would be error to 
dismiss the applications of the Southeastern Express Company and 
the motion is, therefore, denied. 

The motion to dismiss having been denied, there must be a determi- 
nation of the issues of fact as to whether the applicant has shown 
sufficient convenience and necessity for the granting of certificates to 
engage in the business of an intrastate carrier over the several routes 
in question, and in passing upon the application those between Durham 
and Chapel Hill and Asheville and Enka will be considered together; 
and from Gastonia to Lincolnton and to Shelby, from High Point to 
Asheboro and from Hickory to Lenoir will be considered together. 
Durham to Chapel Hill 
Asheville to Enka 

The testimony of the numerous witnesses, including Mr. Hill, the 
Assistant Purchasing Agent for the University; Mr. Smith, a theater 



152 N. C. Utilities Commission 

operator, and Mr. Rose, the General Superintendent of D. Pender 
Stores, satisfies the Commission, beyond any reasonable doubt, that 
the service offered by the Southeastern Express Company between 
Durham and Chapel Hill is absolutely necessary and that the service 
now afforded by Leigh & Durham and the Helms Motor Express Com- 
pany is grossly inadequate to meet the needs of the University com- 
munity. It was shown that Durham is in reality the marketing and 
shopping center for Chapel Hill; that it is only about ten miles dis- 
tant; the intervening territory is almost completely built up and that, so 
far as its trading relations are concerned. Chapel Hill and Carrboro, 
which for all practical purposes are one town, are suburbs of Durham. 
It was further shown that the University of North Carolina, located in 
Chapel Hill, is a large shipper and receiver of express and that there 
would be a demand for service of the Southeastern Express Company, 
even if it were confined to intrastate shipments. Furthermore, the 
town of Chapel Hill-Carrboro, formerly was served by the South- 
eastern Express Company over the Southern Railway from University 
Station, with its terminus in Carrboro, but that said passenger trains 
on said railway have now been discontinued and, therefore, said 
Southeastern Express Company has no other way of serving Chapel 
Hill-Carrboro, except by motor truck. 

The town of Enka, from the testimony, is only a few miles from 
Asheville, and a shorter distance from the built-up section of said city 
and West Asheville; that, in fact, Enka is, for all practical purposes, 
a suburb of Asheville; that there is considerable interchange of express 
between Asheville and Enka; that the nature of such express is such 
that it can be more satisfactorily handled by the Southeastern Express 
Company. 

The Commission finds that convenience and necessity has been 
amply shown for the granting of franchises from Durham to Chapel 
Hill and from Asheville to Enka. 

Gastonia to Lincolnton, to Shelby 

High Point to Asheboro 

Hickory to Lenoir 

Charlotte to Rutherfordton, to Lincolnton 

An examination of the testimony adduced at the hearing, in refer- 
ence to the proposed operations of the Southeastern Express Company 
from Gastonia to Lincolnton and to Shelby; High Point to Asheboro; 
Hickory to Lenoir and Charlotte to Rutherfordton, to Lincolnton, 
shows that a preponderance of express movement over these routes is 
interstate and that the proposed service of the Southeastern Express 
Company will hasten the movement of express between the North 
Carolina points and the north by connecting with earlier trains at 
Charlotte. Numerous witnesses, many from each of the towns in 
question, testified that the Southeastern Express Company would give 
them better service by making better connection in Charlotte and 
that the present permissive motor service of the Southeastern Express 
Company was giving more expeditious service than they had hereto- 
fore received. Considerable testimony was offered as to how many 



Decisions and Adjustments of Complaints 153 

hours would be saved in movements between North Carolina points 
and the northern markets. 

There was also testimony offered tending to show the advantage of 
the Southeastern service in intrastate movements between the various 
towns in question and between Charlotte and these towns, but the 
principal necessity for the Southeastern service, as shown by the 
testimony, arises from lack of coordinated train service at Charlotte 
and from inconvenient schedules of the present franchise motor 
express carriers. No contention was made that there was not now 
ample facilities to handle all the express business of the several towns 
in question if the schedules were arranged to meet the public needs. 
Every one of the towns at this time are served by the Southeastern 
Express Company by rail. All of them are served by one or more fran- 
chise motor express companies and nearly all have the service of the 
American Railway Express Company. The quantity and kind of ser- 
vice is ample and the only additional convenience which would be 
afforded by the Southeastern Express Motor service is that it would 
provide new schedules arriving and departing from the various towns 
at different times from any schedules which they now have. There is 
no evidence that the business has increased beyond the capacity of the 
present operators to handle, or that the present operators would be 
unable to provide ample facilities if there were an increase in business. 
On the contrary, it appears that the Southeastern Express Company 
would divert much of its present rail movement to its motor line and 
would take business from the other transportation companies. 

The testimony of the outstanding business men of these towns that 
this service is necessary to meet public convenience and necessity has 
been given most serious consideration by this Commission and it is 
with extreme reluctance that the Commission reaches a conclusion 
contrary to their opinion. It is undoubtedly true that every additional 
service provides some convenience, but it is also true that the addi- 
tional convenience may be temporary and that in the long run too 
many transportation companies result in inadequate and inferior ser- 
vice. The Commission has tried to take a long view of this case. The 
reasons advanced for the granting of these franchises could, with equal 
force and in some instances with greater force, be offered as reasons 
for extending similar service to 100 or more towns in North Carolina. 
If the franchises were granted in this case, the Commission would, in 
all probability, be called upon to grant similar franchises to numerous 
other towns for like service and the result would be that all over 
North Carolina we would have a net-work of express companies, both 
Southeastern and American Railway, diverting their movements from 
the railroads to the highways; duplicating their own service and that 
of the franchise motor truck operators; creating unnecessary motor 
express competition and, finally, destroying and running out of busi- 
ness motor franchise carriers who have invested large amounts of 
money in equipment to serve the public. Furthermore, just as strong 
a case of convenience and necessity could be made by the railroads 
for the operation of motor trucks in the carrying of freight as has 
been made by the Southeastern Company in this case for the carrying 



154 N. C. Utilities Commission 

of express, which eventually would surely disorganize and destroy 
the whole motor carrier industry to the detriment and inconvenience 
of the public. 

This Commission believes, certainly under existing conditions, that 
except in unusual cases like from Durham to Chapel Hill and from 
Asheville to Enka, the railway companies should remain upon the 
rails and not compete with franchise motor carriers by engaging in a 
similar business partly by rail and partly by motor. Certainly over 
routes where adequate and ample service is given by the present 
motor carriers, railroad transportation companies should not be al- 
lowed to divert the rail movements to the highways except by the 
purchase of existing franchises in the manner provided by law. 

It must be remembered that the operations of the Southeastern 
Express Company, which the Truck Owners Association have com- 
plained of, were permitted during the depression as an emergency 
service. The passenger business of the railroads had become almost nil, 
and many passnger trains had been discontinued, thereby discontinuing 
a like number of the schedules of the Southeastern Express Company. 
In order that prompt deliveries might be made by the Express Com- 
pany, it was allowed to operate trucks on the highways from the cen- 
tral points to take the place of the deliveries formerly handled on the 
passenger trains. With the great increase of travel by rail, many of 
the main line passenger schedules have been restored and the prospects 
are that said restoration will be continued, thereby removing the 
necessity which existed during the depression of diverting the railway 
express service from the rails to the highways. With readjustments in 
schedules here and there, railroad express companies can again provide 
in most instances ample service by rail to meet the public needs. In 
some few instances it may be necessary to revise the schedules of 
franchise motor truck operators which this Commission has the power 
to do. 

Wherefore it is ordered, that that part of the application of the 
Southeastern Express Company for a motor franchise from Durham 
to Chapel Hill-Carrboro and from Asheville to Enka be granted; and 
that the remainder of said application be denied. 

It is further ordered, that as to the operations over the routes 
wherein the application has been denied this order shall not become 
effective until July 1st, 1937. 

This the 5th day of June, 1937. 

(Signed) Stanley Winborne, 

Coinmissioner. 

Attorneys for Southeastern Express Co. 
Mr. Rembert Marshall, Atlanta, Ga. 
Hon. Willis Smith, Raleigh, N. C. 

Attorneys for N. C. Truck Owners Association 
Mr. C. A. Cochran, Charlotte, N. C. 
Mr. C. D. Taliaferro, Charlotte, N. C. 
Mr. E. J. Hanson, Charlotte, N. C. 

Docket No. 715. 



Dfxisions and Adjustments of Complaints 155 

PROTEST OF NORTH CAROLINA TRUCK OWNERS ASSOCIATION 
TO THE OPERATION INTER-CITY BY MOTOR VEHICLE OF THE 
SOUTHEASTERN EXPRESS COMPANY. 

and the 
APPLICATION OF SOUTHEASTERN EXPRESS COMPANY FOR 
FRANCHISE CERTIFICATES AUTHORIZING THE OPERATION 
OF MOTOR VEHICLES FOR THE TRANSPORTATION OF EX- 
PRESS MATTER OVER THE FOLLOWING ROUTES: (1) BE- 
TWEEN DURHAM AND CHAPEL HILL, OVER HIGHWAYS NOS. 
55 AND 54; (2) FROM GASTONIA TO LINCOLNTON VIA U. S. 
HIGHWAY NO. 74 TO SHELBY, THENCE TO LINCOLNTON VIA 
STATE HIGHWAY NO. 150, AND FROM LINCOLNTON TO GAS- 
TONIA VIA U. S. HIGHWAY NO. 321; (3) BETWEEN HIGH POINT 
AND ASHEBORO VIA RANDLEMAN OVER U. S. HIGHWAYS 
NOS. 311 AND 220; (4) BETWEEN LENOIR AND HICKORY OVER 
U. S. HIGHWAY NO. 321; (5) FROM ASHEVILLE TO ENKA OVER 
THE SAND HILL ROAD, AND FROM ENKA TO ASHEVIILE VIA 
U. S. HIGHWAYS NOS. 19 AND 23; AND (6) BETWEEN CHAR- 
LOTTE AND RUTHERFORDTON VIA U. S. HIGHWAY NO. 27 
FROM CHARLOTTE TO LINCOLNTON, THENCE OVER HIGH- 
WAY NO. 150 FROM LINCOLNTON TO SHELBY, THENCE TO 
RUTHERFORDTON VIA U. S. HIGHWAY NO. 74. 

Order Amending Order of June 5, 1937 
Extending effective date from July 1, 1937 to September 1, 1937. 
Whereas, order was issued on June 5, 1937, effective July 1, 1937, 
in Docket No. 715, as above-entitled; and, whereas, voluminous excep- 
tions have been filed by the Southeastern Express Company, and it is 
desired to give full consideration thereto; and, whereas, the business 
pending before the Commission at this time will prevent the careful 
consideration of these exceptions before the effective date of the origi- 
nal order, July 1, 1937; therefore, it is 

Ordered that the effective date of said order of June 5, 1937, in the 
docket above-named, be, and the same is hereby, extended to Septem- 
ber 1, 1937. 

This June 29, 1937. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
By order of the Commissioner: 

(Signed) R. O. Self, Chief Clerk. 
Docket No. 715. 



156 N. C. Utilities Commission 

PROTEST OF NORTH CAROLINA TRUCK OWNERS ASSOCIATION 
TO THE OPERATION INTER-CITY BY MOTOR VEHICLE OF 
THE SOUTHEASTERN EXPRESS COMPANY 

And the 
APPLICATION OF SOUTHEASTERN EXPRESS COMPANY FOR 
FRANCHISE CERTIFICATES AUTHORIZING THE OPERATION 
OF MOTOR VEHICLES FOR THE TRANSPORTATION OF EX- 
PRESS MATTER OVER THE FOLLOWING ROUTES: (1) BE- 
TWEEN DURHAM AND CHAPEL HILL, OVER HIGHWAYS NOS. 
55 AND 54; (2) FROM GASTONIA TO LINCOLNTON VIA U. S. 
HIGHWAY NO. 74 TO SHELBY, THENCE TO LINCOLNTON VIA 
STATE HIGHWAY NO. 150, AND FROM LINCOLNTON TO GAS- 
TONIA VIA U. S. HIGHWAY NO. 321; (3) BETWEEN HIGH 
POINT AND ASHEBORO VIA RANDLEMAN OVER U. S. HIGH- 
WAYS NOS. 311 AND 220; (4) BETWEEN LENOIR AND HICK- 
ORY OVER U. S. HIGHWAY NO. 321; (5) FROM ASHEVILLE TO 
ENKA OVER THE SAND HILL ROAD, AND FROM ENKA TO 
ASHEVILLE VIA U. S. HIGHWAYS NOS. 19 AND 23; AND (6) 
BETWEEN CHARLOTTE AND RUTHERFORDTON VIA U. S. 
HIGHWAY NO. 27 FROM CHARLOTTE TO LINCOLNTON, 
THENCE OVER HIGHWAY NO. 150 FROM LINCOLNTON TO 
SHELBY, THENCE TO RUTHERFORDTON VIA U. S. HIGHWAY 
NO. 74. 

Ruling on Exceptions 
This matter comes again before the Commission upon the excep- 
tions filed by the Southeastern Express Company on June 17, 1937, to 
the order made by this Commission in the above entitled cause on 
June 5, 1937. 

In the order of June 5, 1937, this Commission authorized the issu- 
ance of a certificate of franchise to the Southeastern Express Company 
for motor express service from Durham to Chapel Hill over Highways 
55 and 54; and also from Asheville to Enka over Sand Hill Road from 
Enka to Asheville via U. S. Highways Nos. 19 and 23. 

Said order denied the application of the Southeastern Express 
Company for franchise from Gastonia to Lincolnton via U. S. Highway 
No. 74 to Shelby, thence to Lincolnton via State Highway No. 150 from 
Lincolnton to Gastonia via U. S. Highway No. 321; between High Point 
and Asheboro via Randleman over U. S. Highways Nos. 311 and 220; 
between Lenoir and Hickory over U. S. Highway No. 321; and between 
Charlotte and Rutherfordton via U. S. Highway No. 27 from Charlotte 
to Lincolnton, thence over Highway No. 150 from Lincolnton to 
Shelby, thence to Rutherfordton via U. S. Highway No. 74. 

To the refusal of this Commission in its said order of June 5, 1937 
to grant a certificate to the applicant for the operations over the high- 
ways enumerated in the preceding paragraph hereof, the applicant 
excepts. 

Over all of the routes hereinbefore set out, except between Char- 
lotte and Rutherfordton via U. S. Highway No. 27 from Charlotte to 
Lincolnton, thence over Highway No. 150 from Lincolnton to Shelby, 



Decisions and Adjustments of Complaints 157 

thence to Rutherfordton via U. S. Highway No. 74, the applicant has 
been operating permissively for several years. No franchise was 
granted when said operation was begun, but no objection was made 
to said operations, for the reason that due to discontinuance of train 
service it appeared that it was necessary for the delivery of express, 
which had heretofore been carried on the trains. Application for fran- 
chise over the respective routes was filed by the Southeastern Express 
Company on the 29th day of April, 1936, and the hearings on said 
application were had on the 16th day of June, 1936. 

Since the rendition of the order in this cause and since the filing 
of the exceptions under consideration, this Commission has again care- 
fully reviewed the record and furthermore has made personal investi- 
gation of the conditions existing along the routes in question and the 
need for the service applied for. While the Commission is still of the 
opinion, as expressed in the original order, that it is not for the best 
interest of the public to increase the congestion caused by numerous 
highway transportation facilities by authorizing rail carriers to trans- 
fer their activities from the rails to the highways, it does find, however, 
that where said service has already been instituted and is now being 
patronized by the public, that the general increase in business is suffi- 
cient to justify the continuation of the existing service in the instant 
cases, and that to withdraw any part of the service would work an 
inconvenience to the public in the territory now served. It is further 
found, as stated in the original order, that the preponderance of the 
business handled by the Southeastern Express Company is interstate, 
but there is also an amount of intrastate business which the South- 
eastern Express Company has been handling with peculiar advantage 
to the public and which is a class of business that the franchise motor 
express companies, with few exceptions, would not get. 

Upon consideration of all the facts and circumstances, the Commis- 
sion has reached the opinion that the original order of June 5, 1937 
should be modified and changed and that the applications for fran- 
chises, except the application for franchise between Charlotte and 
Rutherfordton via U. S. Highway No. 27 from Charlotte to Lincolnton, 
thence over Highway No. 150 from Lincolnton to Shelby, thence to 
Rutherfordton via U. S. Highway No. 74, should be granted. This 
means that the applications of the Southeastern Express Company for 
franchise over routes where it has been and is now operating, should 
be granted, but that the application for franchise over routes where 
it has not been and is not now operating, should be denied. 

Wherefore, the exceptions of the Southeastern Express Company 
to the order of June 5, 1937, insofar as they relate to the refusal of 
this Commission to grant franchises for the operation of motor express 
service by the Southeastern Express Company over the routes, afore- 
mentioned, where service is now being given, are allowed; and the 
Exception of the applicant to that part of the order denying the appli- 
cation for franchise from Charlotte to Lincolnton to Shelby and to 
Rutherfordton, which has never been operated, is overruled. 

The order of June 5th, 1937, is therefore modified, changed and 
reversed to conform with the ruling on the various exceptions herein 



158 N. C. Utilities Commission 

and franchise certificates are ordered issued as provided in said order 
of June 5, 1937, as herein modified, changed and reversed, upon a 
compliance with the standard rules and regulations of this Com- 
mission. 

This the 30th day of August, 1937. 



Stanley Winborne, 

Utilities Commissioner. 



Docket No. 715. 



PROTEST OF NORTH CAROLINA TRUCK OWNERS ASSOCIATION 
TO THE OPERATION INTER-CITY BY MOTOR VEHICLE OF 
THE SOUTHEASTERN EXPRESS COMPANY 

And the 
APPLICATION OF SOUTHEASTERN EXPRESS COMPANY FOR 
FRANCHISE CERTIFICATES AUTHORIZING THE OPERATION 
OF MOTOR VEHICLES FOR THE TRANSPORTATION OF EX- 
PRESS MATTER OVER THE FOLLOWING ROUTES: (1) BE- 
TWEEN DURHAM AND CHAPEL HILL, OVER HIGHWAYS NOS. 
55 AND 54; (2) FROM GASTONIA TO LINCOLNTON VIA U. S. 
HIGHWAY NO. 74 TO SHELBY, THENCE TO LINCOLNTON VIA 
STATE HIGHWAY NO. 150, AND FROM LINCOLNTON TO GAS- 
TONIA VIA U. S. HIGHWAY NO. 321; (3) BETWEEN HIGH 
POINT AND ASHEBORO VIA RANDLEMAN OVER U. S. HIGH- 
WAYS NOS. 311 AND 220; (4) BETWEEN LENOIR AND HICKORY 
OVER U. S. HIGHWAY NO. 321; (5) FROM ASHEVILLE TO 
ENKA OVER THE SAND HILL ROAD, AND FROM ENKA TO 
ASHEVILLE VIA U. S. HIGHWAYS NOS. 19 AND 23; AND (6) 
BETWEEN CHARLOTTE AND RUTHERFORDTON VIA U. S. 
HIGHWAY NO. 27 FROM CHARLOTTE TO LINCOLNTON, 
THENCE OVER HIGHWAY NO. 150 FROM LINCOLNTON TO 
SHELBY, THENCE TO RUTHERFORDTON VIA U. S. HIGHWAY 
NO. 74. 

Order Overruling Exceptions 

This matter again comes before the Commission upon exceptions 
filed by the North Carolina Truck Owners Association, dated Septem- 
ber 3, 1937, and filed on September 9, 1937, to the order of this Com- 
mission entered under date of August 30, 1937, which order of August 
30, 1937 in certain respects overrules, changes and modifies the former 
order of this Commission entered as of June 5, 1937. 

Upon consideration of each and all of the exceptions filed on 
September 9, 1937, the Commission finds no good reason for further 
changing the order heretofore made in this cause and, therefore, each 
and all of said five exceptions are severally and collectively denied. 

This the 25th day of October, 1937. 

(Signed) Stanley Winborne, 

Utilities Com,m,issioner. 
Docket No. 715. 



Decisions and Adjustments of Complaints 159 

PETITION OF OLD SOUTH LINES, INC., TO TRANSFER CERTIFI- 
CATES, CONTRACTS AND ASSETS TO ATLANTIC GREYHOUND 
LINES. 

This cause arises upon the application of the Old South Lines, Inc. 
to transfer its franchise certificates, contracts, and assets to the Atlantic 
Greyhound Lines, a Virginia Corporation, domesticated in North Caro- 
lina in accordance with law. 

Hearing was set for November 16, 1936, and notices were published 
in daily papers in the cities of Asheville, Charlotte, Winston-Salem, 
and Greensboro in compliance with law as is evidenced by affidavits 
of the publishers. 

The day of hearing having arrived, no protests were presented 
against the petition. 

The operation of petitioner is well known to the Commissioner and 
its corporate activities have been officially approved from time to time, 
and it is thought that the granting of this petition will result in 
improved service and the general convenience of the public. 

Petitioner's operation has been leased to the Atlantic Greyhound 
Lines for some time and the individuals composing the management 
of both corporations are closely related, therefore, it is 

Ordered, That the petition be granted, and that the Franchise 
Certificate No. 396, and such contracts and assets now held by the Old 
South Lines, Inc., as the law requires to be approved by this Commis- 
sion before transfer, be transferred to the Atlantic Greyhound Lines 
as requested; and, it is further 

Ordered, That this order shall be effective November 30, 1936; and, 
it is further 

Ordered, That the approval of this transfer as herein set forth shall 
not prejudice the legal right of any person to any claim that may be 
adjudicated in accordance with the laws of this State made and 
provided. 

Done in the City of Raleigh, North Carolina, this November 30, 
1936. 

Stanley Winborne, 

Utilities Commissioner. 
■ Attest: 

R. O. Self, Chief Clerk. 
Docket No. 883. 

APPLICATION OF OTEEN BUS LINE, INC., FOR FRANCHISE 
CERTIFICATE TO OPERATE FROM PACK SQUARE IN ASHE- 
VILLE, N. C. OVER HIGHWAY 23 TO STOCKSVILLE, AND OVER 
HIGHWAY 685 TO BARNARDSVILLE. 

Order 
This cause arises upon the application of Oteen Bus Line, Inc., for 
a franchise to operate passenger motor vehicles as outlined in the 
caption of this order. The case was set for hearing on June 1, 1937, at 
10:30 o'clock A.M. 



160 N. C. Utilities Commission 

It appeared from the evidence that the reason for operating to 
Barnardsville was that a C. C. Camp was to be located in that vicinity, 
and evidence was presented which showed that the applicant, if he 
received certificate in this matter, would operate probably 90% of the 
distance over franchise route. Therefore, it is not thought feasible 
because the camp has not been made permanent; and the vicinity hav- 
ing a bus service already, it was thought that the granting of the appli- 
cation would not be in the interest of convenience and necessity. There- 
fore, it is 

Ordered that the petition be dismissed. 
This 14th day of July, 1937. 

Stanley Winborne, 

Utilities Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 931. 

APPLICATION OF PARKER & STOUT TRANSFER COMPANY FOR 
LICENSE CERTIFICATE TO OPERATE AS RESTRICTED COM- 
MON CARRIER BY MOTOR VEHICLE OF FREIGHT FROM: HIGH 
POINT TO NEW BERN OVER U. S. 70; HIGH POINT TO RALEIGH 
OVER U. S. 70; TO WASHINGTON OVER 264; TO WILLIAMSTON 
OVER 17, RETURNING ON ROUTE 64 TO RALEIGH, THENCE TO 
HIGH POINT ON 70. HIGH POINT TO ROCKINGHAM OVER U. S. 
220, TO WILMINGTON ON 74, RETURN BY 421 TO JULIAN, 
THENCE TO HIGH POINT OVER 61. 

Order 

This cause arises upon the application of Parker and Stout Transfer 
Company for certificate to operate as motor vehicle carrier over the 
routes outlined above, and same was heard on January 28, 1938, at 
10:00 A. M., after due notice to interested carriers and publication as 
provided by statute. 

The applicant was represented by Hon. Carl L. Bailey, Attorney 
at Law, Plymouth, N. C, and protestants were represented by Mr. 
Norman Block, Attorney at Law, Greensboro, N. C, the protestants 
being: P. & F. Motor Express, Miller Motor Express, Black's Motor 
Express, Capital Coast Express, Motor Transit Company, Thurston 
Motor Lines, National Convoy & Trucking Co., Stallings Transfer Ser- 
vice, McLeod's Transfer, Inc. 

Upon the case being called and appearances entered, the petitioner 
moved to amend his certificate as follows: 

"The undersigned, George E. Parker, trading as Parker & Stout 
Transfer Company, hereby submits the following amendment to 
his application for license certificate for operation of Motor 
Vehicle Carrier: 

"The undersigned, George E. Parker, having acquired all of 
the right, title and interest of Gaines O. Garland in and to the 
property and business, including assets of all kinds of Parker & 
Stout Transfer Company, which formerly was a partnership 
between the said George E. Parker & Gaines O. Garland, but 



Decisions and Adjustments of Complaints 161 

desiring and intending to continue the operation of said business 
under the firm name or assumed name of Parker & Stout Transfer 
Company, hereby amends said application by substituting for the 
answer to question one the following: 'Parker & Stout Transfer 
Company, said name being a firm name or trade name of George 
E. Parker, an individual, who is the sole owner of the said firm 
and its business.' 

"Further amend by striking from the answer to question four 
the name of Gaines O. Garland. 

'Turther amend by adding at the end of the answer to question 
seven the following: 'and N. C. Route 610.' 

"Further amend said application to an application for license 
certificate for operation as a Restricted Common Carrier by Motor 
Vehicle, as provided by Chapter 247 Public Laws of 1937 and other 
laws relative thereto, instead of Common Carrier as filed said 
operation to be limited to the following: 

'Furniture 

Plate glass 

Furniture manufacturer's accessories 

Household and store furnishings and fixtures 

Emergency machinery parts 

Emergency shipments arising because of routing over two or 
more Common Carrier lines to distant or inconvenient points out 
of High Point. 

Shipments from origin to destination without pickup or deliv- 
ery enroute. 

"Application is further amended so as to provide that applicant 
may deliver commodities shipped by his line to consignee when 
the delivery point is not more than twenty-five miles removed 
from the routes as set out in the answer to question seven, and 
may accept shipments and call for same when the point of origin 
of such shipment is not more than twenty-five miles distant from 
said routes." 
After the hearing progressed with reference to the discussion by 
appearances of the effect of the granting of the application on existing 
and participating carriers, an agreement was reached between the par- 
ties present as hereinbefore outlined that a certificate could be issued 
giving the applicant restricted privileges as follows: 

"The following was to be stricken from the amendment as first 
filed: 

"Furniture 

Plate glass 

Furniture manufacturer's accessories 

Household and store furnishings and fixtures 

Emergency machinery parts 

Emergency shipments arising because of routing over two or 
more common carrier lines to distant or inconvenient points out 
of High Point 

Shipments from origin to destination without pickup or deliv- 
ery enroute." 

"In lieu of same was to be substituted the following: 

"Furniture, including unassembled furniture, finished or un- 
finished, crated or uncrated. 

Plate glass.' " 

Whereupon the .protestants present withdrew further objections 
and it was found that to grant the petitioner a certificate as Restricted 
Common Carrier as provided by statute for the commodities named 



162 N. C. Utilities Commission 

above would from the evidence enhance the convenience and neces- 
sity, therefore it is 

Ordered that the petition be granted and the petitioner be granted 
a certificate when he has otherwise complied with the statute to 
operate over the routes named in the caption of this order, restricted 
to the commodities named in the agreement above. 
This, February 28, 1938. 

Stanley Winborne, 

Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1036. 

APPLICATION QUEEN CITY COACH COMPANY FOR PASSENGER 
BUS FRANCHISE FROM MAXTON VIA RED SPRINGS, LUM- 
BERTON AND OTHER POINTS. 

Order 

This cause arises upon the application of the Queen City Coach 
Company, Inc., for franchise from Maxton to the intersection of High- 
ways 71 and 22 via Red Springs over Highway 71; from Raeford to 
Lumberton via Red Springs over Highways 71 and 211; and from 
Lumberton to N. C.-S. C. State Line over Highway 202. This appli- 
cation was filed March 30, 1935, and was heard on October 27, 1936. 
Petitioner was represented by Attorneys R. Gregg Cherry and K. J. 
Kindley. Respondents, the Atlantic Coast Line Railroad Company, was 
represented by Attorney Murray Allen. 

Evidence was presented that the petition has been published ac- 
cording to the requirements of the statute and that all parties inter- 
ested had been notified. It was produced in evidence that the petitioner 
had been requested for more than three years by people in the vicinity 
of Red Springs to operate a bus through that section for the benefit of 
Flora McDonald College, and other business interests in that section 
presented petitions for the service proposed on all the lines outlined 
above. 

The Atlantic Coast Line Railroad objected to that part of the 
operation for intrastate service between Whiteville and N. C.-S. C. 
State Line, but this service was endorsed by 58 citizens of Whiteville, 
65 from Cerro Gordo and 59 at Fairbluff, as well as many endorse- 
ments from other smaller places. 

The petitioner operates generally in the territory affected by this 
application and it is doubtful that any other passenger bus carrier 
could give the service that the petitioner proposes to give because of 
the petitioner's ability to correlate the proposed schedules with the 
service which it now has in that territory. It is produced in evidence 
that the petitioner is amply able to give the service and that there is 
a necessity for same; Therefore, it is 

Ordered that the petition be granted and that the franchise cer- 



Decisions and Adjustments of Complaints 163 

tificate now held by the petitioner be amended to include the routes 
outlined in this application and that the petitioner file its schedules 
and fares therefor. 

It is FURTHER ORDERED that this Commission be notified when the 
service is inaugurated. 

This the 29th day of April, 1937. 

Stanley Winborne, 

Utilities Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 352. 

APPLICATION OF QUEEN CITY COACH COMPANY FOR A CER- 
TIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR 
THE TRANSPORTATION OF PASSENGERS BY MOTOR VEHICLE 
BETWEEN CHADBOURN, N. C. AND THE NORTH CAROLINA- 
SOUTH CAROLINA STATE LINE VIA U. S. HIGHWAY NO. 76. 

Order 

This cause arises upon the application of Queen City Coach Com- 
pany for a Certificate of Public Convenience and Necessity authoriz- 
ing the transportation of passengers, light express and newspapers by 
motor vehicle between Chadbourn, N. C. and the North Carolina- 
South Carolina State Line via U. S. Highway No. 76. This application 
was filed March 30, 1935, and was heard on October 27, 1936. Peti- 
tioner was represented by Attorneys R. G. Cherry and K. J. Kindley. 
The protestant, Atlantic Coast Line Railroad, was represented by 
Attorney Murray Allen. 

The Atlantic Coast Line Railroad objected to the granting of an 
intrastate certificate between Chadbourn, N. C. and the North Caro- 
lina-South Carolina State Line, on the grounds that the service pro- 
posed would be directly competitive to it and that there was sufficient 
service in the territory. 

The evidence disclosed that the applicant had complied with all 
the statutory requirements. The service proposed by the applicant 
received the endorsement of Sixty (60) citizens of Chadbourn, N. C, 
Sixty (60) citizens of Fair Bluff, N. C, Sixty-six (66) citizens of 
Cerro Gordo, N. C, and in addition the endorsements of other towns 
that would be affected. The route applied for will be a short cut for 
applicant between two of its main terminals, Wilmington, N. C. and 
Florence, S. C, and will do away with the necessity of routing pas- 
sengers between said points via Lumberton, and will shorten both 
the travel time and distance between said points. 

The petitioner operates generally in the territory covered by the 
application. It is doubtful if any other passenger carrier by motor 
vehicle could render the service proposed because of petitioner's 
ability to coordinate its time schedules. The petitioner is able to 
render the service proposed and such service will not be injurious 
to any other carrier. There is a necessity for the service proposed. 



164 N. C. Utilities Commission 

It is now, therefore, ordered that the application of Queen City 
Coach Company for a Certificate of Public Convenience and Necessity 
authorizing the transportation of passengers, light express, mail, and 
newspapers by motor vehicle between Chadbourn, N. C. and the 
North Carolina-South Carolina State Line via U. S. Highway No. 76, 
be, and the same hereby is granted. 

This the 18th day of November, 1937'. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 352. 

APPLICATION QUEEN CITY COACH COMPANY TO OPERATE 
PASSENGER BUSES BETWEEN LUMBERTON AND WILMING- 
TON AS FOLLOWS: FROM LUMBERTON, N. C. TO CLARKTON, 
N. C. OVER N. C. HIGHWAY NO. 211; FROM CLARKTON, N. C. 
TO ELIZABETHTOWN, N. C. OVER U. S. 701; FROM ELIZA- 
BETHTOWN, N. C. TO THE JUNCTION OF U. S. HIGHWAYS 
74 AND 76 WITH N. C. HIGHWAY NO. 28 NEAR ACME, OVER 
N. C. 28. 

Order 

This cause comes on to be heard upon the application of the Queen 
City Coach Company for a Certificate of Public Convenience and 
Necessity to operate passenger buses from Lumberton to Clarkton 
via N. C. 211, from Clarkton to Elizabethtown via U. S. 701, from 
Elizabethtown to the junction of U. S. 74 and 76 with N. C. 28, near 
Acme, over N. C. 28 to Wilmington. 

Application was filed February 27, 1934 and first hearing was held 
on October 27, 1936, second hearing being held June 10, 1937. The 
reason that the hearing was postponed from time to time was because 
of the condition of the highways in the vicinity on account of repairs 
being made and new roads being built. Evidence was presented that 
petition had been published according to the requirements of the 
statute, and that all parties interested had been notified. The petitioner 
was represented by R. G. Cherry and K. J. Kindley. Atlantic Coast 
Line Railroad Company, intervener, was represented by Murray Allen 
at the first hearing on October 27, 1936. No opposition appeared at 
the June 10, 1937 hearing. 

Evidence was produced by the petitioner that it had received 
numerous requests to operate the service proposed from the residents 
of the section through which it was proposed, and petitions and let- 
ters were presented as evidence thereof. The original opposition of 
the Atlantic Coast Line Railroad Company was only insofar as the 
same operated to Elizabethtown. The petitioner operates generally in 
the territory affected by this application and it is doubtful that any 
other passenger bus carrier could give the service that the petitioner 
proposes to give because of its ability to coordinate the proposed time 



Decisions and Adjustments of Complaints 165 

schedules with the service which it now has in that territory. From 
the evidence it appears that the petitioner is financially able to render 
such service. Evidence did not disclose in any way that the proposed 
service would, in any way, render unfair competition to the inter- 
venor in the first hearing, nor to any other carrier. 

The reason for the second hearing was because an amendment 
which the applicant desired to make to the original application be- 
cause of another application which was filed, the applicant of which 
had an agreement with the Queen City Coach Company, the applicant 
in this case, with reference to certain routings necessitating the change 
of the routing in this application. 

It appears from the evidence that the granting of this appplication 
will enhance the convenience of travel in the territory affected, and 
that public convenience and necessity will be generally improved 
thereby. Therefore, it is 

Ordered that the Certificate of Convenience and Necessity now 
held by the petitioner, the Queen City Coach Company; namely, Cer- 
tificate No. 240, be amended so as to include the following route: 

1. From Lumberton, N. C. to Clarkton, N. C. via State Highway 
No. 211; from Clarkton, N. C. to Eiizabethtown, N. C. via U. S. 
701; from Eiizabethtown, N. C. to the junction of U. S. 74 
and 76 with N. C. 28 via N. C. 28. 

2. This order is issued upon the understanding that the peti- 
tioner has filed an application with the Interstate Commerce 
Commission for Certificate of Public Convenience and Neces- 
sity over the route set out above. 

3. The amendment to this certificate of the petitioner shall be 
made within thirty days after petitioner has received a Cer- 
tificate of Public Convenience and Necessity from the Inter- 
state Commerce Commission for the same route as set out 
herein. 



This the 14th day of July, 1937. 



Stanley Winborne, 

Utilities CoTumissioner. 



By order of the Commissioner: 

R. O. Self, Chief Clerk. > 

Dockets Nos. 40 and 863. 

APPLICATION OF QUEEN CITY COACH COMPANY FOR FRAN- 
CHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CAR- 
RIER FROM KINSTON TO ROCKY MOUNT AS FOLLOWS: 
KINSTON TO JUNCTION U. S. 258 AND N. C. 43 VIA U. S. 258; 
FROM JUNCTION U. S. 258 AND N. C. 43 TO ROCKY MOUNT 
VIA N. C. 43. 

Order 

This cause arises upon the application of the Queen City Coach 
Company for a franchise as outlined in the caption of this order. 
Hearing was held on several applications in this vicinity; and one 
particularly, that of the Safway Transit Company, proposing to operate 
from Jacksonville through Richlands, Kinston, to Rocky Mount over 



166 N. C. Utilities Commission 

the same highways outlined in this application. The application of the 
Safway Transit Company has been granted. Therefore, it is 

Ordered that the petition in this case be, and the same is hereby, 
denied. 

This 14th day of July, 1937. 

Stanley Winborne, 

Utilities Commissioner. 

By order of the Commissioner: 

R. O. Self, Chief Clerk. 

Docket No. 1008. 

APPLICATION OF THE QUEEN CITY COACH COMPANY FOR 
FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE 
CARRIER FROM CLINTON TO GOLDSBORO, OVER THE FOL- 
LOWING ROUTE: FROM CLINTON TO NEWTON GROVE VIA 
U. S. 701; NEWTON GROVE TO GOLDSBORO VIA N. C. 102. 

Order 

This cause arises upon the petition of Queen City Coach Company 
for franchise to operate motor vehicles in the vicinity, and over the 
highways, referred to in the caption of this order. 

Evidence was presented which showed that the petitioner had 
properly advertised the same according to the law, and hearing was 
held on Thursday, June 10, 1937, at 10:00 o'clock, A. M. No opposition 
was presented to the application and the petitioner presented numerous 
letters and petitions from people in the vicinity along the highway 
over which it is proposed to establish the operation. 

This application covers new territory and the evidence proved 
that the granting of the petition will enhance the public convenience. 
Therefore, it is 

Ordered that the petition be granted, and that Certificate No. 240, 
now held by the Queen City Coach Company, be amended within 
thirty days after the Interstate Commerce Commission has granted 
a similar certificate of convenience and necessity to the petitioner over 
the exact route outlined in this order. 

This 14th day of July, 1937. 

Stanley Winborne, 

Utilities Commissioner. 

By order of the Commissioner: 

R. O. Self, Chief Clerk. 

Docket No. 1010. 

PETITION OF QUEEN CITY COACH COMPANY AND STATES- 
VILLE-SALISBURY COACH COMPANY FOR THE MERGING OF 
THE STATESVILLE-SALISBURY COACH COMPANY WITH THAT 
OF THE QUEEN CITY COACH COMPANY. 

Order 
This cause arises upon the application of the Statesville-Salisbury 
Coach Company to be merged with the Queen City Coach Company 



Decisions and Adjustments of Complaints 167 

and transfer all its rights, titles and interests in Certificate No. 180, 
now outstanding in the name of the Statesville-Salisbury Coach Com- 
pany. 

For several years the Queen City Coach Company has owned the 
Statesville-Salisbury Coach Company and has operated its line under 
lease between the two corporations, pending the approval of the Inter- 
state Commerce Commission to approve the Queen City Coach Com- 
pany's acquisition of the Statesville-Salisbury Coach Company's cer- 
tificate and operating rights. 

Information is now in the hands of this Commission to the effect 
that the Interstate Commerce Commission, after hearing and Order, 
has approved the acquisition of the Statesville-Salisbury Coach Com- 
pany by the Queen City Coach Company, effective January 10, 1938; 
and the Queen City Coach Company now makes representation to this 
Commission to the effect that it desires to make this merger on Feb- 
ruary 1, 1938, which is the beginning of the fiscal year of the Queen 
City Coach Company. 

At the time that this Commission approved the purchase of the 
stock and the leasing of the operating rights of the Statesville-Salis- 
bury Coach Company by the Queen City Coach Company, it was then 
determined by this Commission that such acquisition would be in the 
interests of public convenience and necessity so as to permit the 
Queen City Coach Company to operate a continuous direct line, with- 
out change, between Asheville, North Carolina and Salisbury, North 
Carolina over Highway Route No. 70. 

Therefore, the application is approved; and the applicants, the 
Queen City Coach Company and the Statesville-Salisbury Coach Com- 
pany, are hereby authorized to make the necessary transfer effective 
on or before February 1, 1938; and the petitioner, the Queen City 
Coach Company is hereby directed to return to this office for cancel- 
lation franchise certificate No. 180 now outstanding in the name of 
the Statesville-Salisbury Coach Company, and to also furnish this 
office with current outstanding certificate No. 240 of the Queen City 
Coach Company for amendment to include the present operating 
rights of the said Statesville-Salisbury Coach Company. 

This January 21, 1938. Stanley Winborne, 

Utilities Commissioner. 

By order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1203. ; 

APPLICATION OF QUEEN CITY COACH COMPANY FOR FRAN- 
CHISE CERTIFICATE AUTHORIZING THE TRANSPORTING OF 
PASSENGERS FROM KENANSVILLE, N. C. TO JACKSONVILLE, 
N. C. OVER NORTH CAROLINA STATE HIGHWAY NO. 24 AND 
^O. 258. O^^^^ 

This petition was filed and after the legal notices were published 
in the paper and notices given to companies affected by the appli- 
cation, the case was heard on October 27, 1936, at 12:00 o'clock M. 



168 N. C. Utilities Commission 

The petitioner was represented by R. G. Cherry, Attorney at Law, 
Gastonia, N. C, K. J. Kindley, General Counsel, and J. H. Quattle- 
baum, Traffic Manager. 

At the time this application was heard the Seashore Transpor- 
tation Company had a petition before the Commission which con- 
flicted with this application for a distance of 15 miles between Jack- 
sonville over 258 and the intersection of 24 near Richlands. The Sea- 
shore Transportation Company was represented by Mr. James M. West, 
President, and John G. Dawson, Attorney. 

Previously the Queen City Coach Company had applied to run 
into Morehead City over Route 24 between Jacksonville and More- 
head, but when the Queen City authorities discovered that Mr. West 
of the Seashore Transportation Company had applied for that route, 
it withdrew that portion of the application and Mr. West withdrew 
his portion of his application between Jacksonville and Richlands. 
This left the Queen City Coach Company applicant between Kenans- 
ville and Jacksonville, and the Seashore Transportation Company 
applicant between Jacksonville and Morehead. 

In the meantime hearing was held on the Safeway Bus Line's ap- 
plication between Jacksonville and Kinston, which would operate over 
Route 258, Richlands to Jacksonville, and the Commission announced 
in that case that it would make that part of Route 258 and 24 between 
Richlands and Jacksonville a thoroughfare which would be used be- 
tween any and all companies who needed it to reach Jacksonville for 
transfer purposes, and so stated in the order issued in that case. Docket 
No. 1168. The Queen City Coach Company now operates Fayetteville 
via Clinton to Kenansville and Kinston, and it is thought from the 
evidence presented in this case, Docket No. 825, that public con- 
venience and necessity will be enhanced with the granting of this 
application, therefore it is 

Ordered that the said petition be granted and that the Queen City 
Coach Company's certificate No. 240 be amended upon presentation 
and that the applicant may begin operations on this line at as early 
a date thereafter as authority can be obtained from the Interstate 
Commerce Commission. 

This, March 2, 1938. Stanley Winborne, 

Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 825. 

APPLICATION OF THE QUEEN CITY COACH COMPANY TO 
OPERATE PASSENGER BUS LINE FROM MONROE, NORTH 
CAROLINA, TO THE NORTH CAROLINA-SOUTH CAROLINA 
STATE LINE OVER HIGHWAY (NORTH CAROLINA) NUMBER 
200. 

This case arises upon the application of the Queen City Coach 
Company to operate intrastate passenger service between Monroe, 



Decisions and Adjustments of Complaints 169 

North Carolina, and the North Carolina-South Carolina State Line 
over Highway (N. C.) No. 200. The application was set for hearing 
at 2:30 P.M. on April 27, 1938, in the Hearing Room of the Utilities 
Commission in Raleigh, North Carolina. 

The petitioner was represented at the hearing on said date by the 
Vice-President and General Manager, L. A. Love, and K. J. Kindley, 
General Counsel. They presented evidence that the petitioner held 
an intrastate franchise in South Carolina from the North Carolina 
State Line to Lancaster, South Carolina, and Mayor Sykes of Monroe 
and representatives of the Civic Clubs appeared in person and testi- 
fied to the public convenience and necessity of the operation. 

No protest was entered at the hearing, but the Atlantic Greyhound 
Corporation's local Attorney, I. M. Bailey, was present and had a 
conference with the petitioner with reference to options held by the 
petitioner. However, after the conference between the petitioner and 
Attorney Bailey, Attorney Bailey announced that he had no protest 
to enter in the matter. 

Therefore it appears that the granting of the petition is in inter- 
est of public convenience and necessity, the petitioner being an ex- 
perienced operator and operating extensively in both North and South 
Carolina. 

Therefore, it is ordered that the petition be granted and that 
certificate Number 240 now outstanding in the name of the Queen City 
Coach Company of Charlotte, North Carolina, be amended upon 
presentation to include Highway No. 200 from Monroe to the South 
Carolina State Line. 



This the 2nd day of May, 1938. 

By order of the Commissioner 

R. O. Self, Chief Clerk. 
Docket No. 1120. 



Stanley Winborne, 

Utilities Commissioner. 



PETITION OF QUEEN CITY COACH COMPANY FOR APPROVAL 
OF THE PURCHASE BY IT OF CERTIFICATES OF PUBLIC CON- 
VENIENCE AND NECESSITY OF ET & WNC MOTOR TRANS- 
PORTATION COMPANY. 

Order 
It having been made to appear to the Commission by petition duly 
filed that the Queen City Coach Company has entered into a purchase 
agreement with the ET & WNC Motor Transportation Company for 
all of the latter's franchises within North Carolina and Tennessee, and 
that said purchase agreement was fully approved on May 18, 1938 by 
the Interstate Commerce Commission after an open hearing at which 
all parties were given due notice to appear. 

And it is further appearing to the Commission that the Queen 
City Coach Company is financially able to operate said franchises in 
a manner promoting public convenience and necessity, and that the 



170 N. C. Utilities Commission 

people residing in the territory through which said operations run 
are favorable to the Queen City Coach Company taking over and 
operating the service at this time given by the ET & WNC. 
Wherefore, it is ordered, 

1. That the sale and transfer by ET & WNC Motor Transporta- 
tion Company of all its right, title and interest in and to 
certificate of public convenience and necessity No. 181 to the 
Queen City Coach Company is hereby approved. 

2. That the sale and transfer by Boone Trail Stages, E. H. Kirby, 
owner, of all its right, or his right, title and interest in and 
to certificate of public convenience and necessity No. 379 to 
Queen City Coach Company is hereby approved. This par- 
ticular franchise being under lease to the ET & WNC. 

3. That certificates of public convenience and necessity Nos. 181 
and 379 be cancelled upon surrender as of June 1, 1938. 

4. That certificate of public convenience and necessity No. 240 
issued to the Queen City Coach Company be amended so as 
to include all the rights and privileges granted by certificates 
of public convenience and necessity Nos. 181 and 379. 

This the 23rd day of May, 1938. 

Stanley Winborne, 
Docket No. 1315. Utilities Commissioner. 

PETITION OF THE RALEIGH-DANVILLE MOTOR EXPRESS FOR 
MOTOR VEHICLE FRANCHISE FROM FRANKLINTON TO 
LOUISBURG OVER HIGHWAY NO. 56, AND LOUISBURG TO 
HENDERSON OVER HIGHWAY NO. 39. 

order 
This cause arises upon the application of the Raleigh-Danville 
Motor Express, owned and operated by Mr. C. S. Manooch of 1605 
Scales Street, Raleigh, North Carolina. Application was duly filed on 
August 18, 1937, and set for hearing at 11:00 o'clock, A. M., Tuesday, 
September 21, 1937. The advertisement was duly published in the 
News and Observer of Raleigh, North Carolina, a newspaper circulat- 
ing in the vicinity affected by the application, and evidence of such 
publication was filed with the Commission by the Business Manager 
of the said publishing company on September 14, 1937. 

The day having arrived for hearing, the petitioner was present, 
and no opposition appearing, the Commission knows of no reason why 
the said petition should not be granted, as the petitioner operates in 
the vicinity of this section and has been giving the people on this line 
emergency service in the absence of any regular operation. There- 
fore, it is 

Ordered that the said petition be granted, and that Certificate No. 
258, now held by said petitioner for operation over other highways, 
be amended to include the highways applied for in this proceeding. 
This, September 22, 1937. Stanley Winborne, 

Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1072. 



i 



Decisions and Adjustments of Complaints 171 

APPLICATION OF J. D. ROSS, JR. AND ARTHUR ROSS, JR., d/b/a 
R. & R. TRANSIT COMPANY, INCORPORATED, FOR FANCHISE 
CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER 
OVER NORTH FAYETTEVILLE STREET IN THE CITY OF ASHE- 
BORO AND HIGHWAY NO. 220 TO THE INTERSECTION OF 
HIGHWAY 62, LOCATED 3/10 MILE BEYOND CITY FRANCHISE 
LIMIT; THENCE OVER HIGHWAY NO. 62 TO CENTRAL FALLS, 
A DISTANCE OF APPROXIMATELY FOUR MILES. 

Order 

This cause arises upon the Petition of J. D. Ross, Jr. and Arthur 
Ross, Jr., d/b/a R. & R. Transit Company, Incorporated, for a franchise 
certificate to operate from Asheboro to Central Falls. The Petitioners 
according to the evidence have authority from the City of Asheboro 
to operate a bus in the City of Asheboro and before beginning such 
operation, desire authority to run to Central Falls in order to pro- 
vide bus service between the Towns. The evidence shows that there 
exists great need for this service and, therefore, it is found that pub- 
lic convenience and necessity will be greatly enhanced by the granting 
of this application. 

Therefore, it is ordered, that the application be granted and that 
the Certificate be issued for this operation when the Petitioners have 
filed insurance on their equipment, equipment specifications, provided 
their drivers with proper drivers license and qualified with the De- 
partment of Revenue be making the necessary deposit there for the 
purchase of tags for their equipment. 

This, August 31st, 1938. 

Stanley Winborne, 

Commissioner. 
By order of the Commission: 

R. O. Self, Chief Clerk. 
Docket No. 1336. 

APPLICATION OF SAFWAY TRANSIT COMPANY TO OPERATE 
AS A MOTOR VEHICLE CARRIER OVER THE FOLLOWING 
ROUTE: JACKSONVILLE TO ROCKY MOUNT VIA RICHLANDS, 
KINSTON, SNOW HILL, FARMVILLE AND PINETOPS OVER 
U. S. 258; THEN FROM PINETOPS TO ROCKY MOUNT OVER 
N. C. 43. 

Order 

This cause arises upon the application of the Safway Transit Com- 
pany for a franchise certificate to operate passenger buses from Jack- 
sonville and Richlands to Rocky Mount via Kinston, Snow Hill, Farm- 
ville and Pinetops over U. S. 258, and from Pinetops to Rocky Mount 
over N. C. 43. The original application was for that part of the road 
between Dunn and Tarboro via Smithfield and Wilson over U. S. 301; 
thence from Wilson to Pinetops over N. C. 42; thence from Pinetops to 
Tarboro over U. S. 258, but the petitioner, by agreement with the Cen- 
tral Coach Lines, Inc., at the time of the hearing was permitted to 



172 N. C. Utilities Commission 

amend its application so as to eliminate the route from Dunn to 
Tarboro by the points named above. 

It was discussed at the hearing that other applications were pending 
to run from Fayetteville to Jacksonville, which would cause a dual 
operation over the road from Richlands to Jacksonville, and it was 
announced at the hearing, and carriers have been generally advised 
since, that any franchise the Commission would issue from Jacksonville 
to points west or north would reserve the right of the Commission to 
run any other carrier over that part of Highway No. 258, from the 
intersection of said 258 with 24, west of Richlands, over 258 to Jack- 
sonville. 

From the evidence presented, Queen City Coach Company operates 
from Fayetteville to Kinston and made application for this line after 
the Safway Transit Company had made its application, and it appeared 
as an intervenor at the hearing and opposed the granting of this appli- 
cation, but the line in question between Jacksonville and Rocky Mount 
through Kinston and points named above is rather far removed from 
the center of operations of the Queen City Coach Company and those 
interested in the Safway Transit Company live in Kinston, are familiar 
with that section of the country, and are largely indorsed by the city 
officials and business people of that section. From the evidence pre- 
sented, the petitioner, Safway Transit Company, is able and willing to 
perform the service proposed; and from the evidence presented, it is 
apparent that public convenience will be enhanced by the granting of 
this application. Therefore, it is 

Ordered that the petition be granted, and that when the petitioners 
have complied with the law, the Rules and Regulations of the Com- 
mission, by filing classification of equipment, insurance, and otherwise 
complying with the law and rules of this Commission, that certificate 
shall be issued authorizing the inauguration of the operation. 

This 14th day of July, 1937. 

Stanley Winborne, 

Utilities Commissioner. 
By order of the Commissier: 
R. O. Self, Chief Clerk. 
Docket No. 1006. 

L. R. POWELL, JR., AND H. W. ANDERSON, RECEIVERS, SEA- 
BOARD AIR LINE RAILWAY. APPLICATION FOR FRANCHISE 
CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER 
BETWEEN MONROE AND WAXHAW. (HIGHWAY 75.) 

Order 
This cause arises upon the application of the Receivers of the Sea- 
board Air Line Railway to extend its operation by motor vehicle truck 
from Monroe to Waxhaw, the Seaboard Air Line Railway having held 
a franchise over Highway No. 74 from Hamlet to Monroe via Rocking- 
ham and Wadesboro, and the present petition requests authority to 
extend this operation for a distance of twelve miles within the State of 
North Carolina over Highway No. 75 to Waxhaw. 



Decisions and Adjustments of Complaints 173 

Application was filed with the Commission on August 28, 1937, and 
hearing was heard on November 10, 1937, at 11:00 o'clock A. M. in the 
office of the Commissioner in Raleigh. The petitioner was represented 
by W. L. Stanley, Chief Public Relations Officer, Atlanta, Georgia; 
Murray Allen, Attorney at Law, Raleigh, N. C; J. H. Bowen, Superin- 
tendent, Georgia Division; and R. W. Rogers, Superintendent, N. C. 
Division. 

Mr. R. S. Koonce represented Southern Motor Carriers Rate Confer- 
ence appeared in opposition to the petition, who stated that the objec- 
tions which the Southern Motor Carriers Rate Conference had to the 
application were based mainly upon the objections which were filed 
with the brief prepared by Mr. Edgar Watkins, Jr., Attorney at Law of 
Atlanta, Georgia and previous cases heard by this Commission. This 
has reference to briefs filed in the cases before Joint Boards Nos. 103, 
107, and 204. 

The Receivers of the Seaboard were asking authority to operate 
trucks as auxiliary service between certain concentration points. 

No evidence was offered to show that there was any motor vehicle 
service of any kind between Monroe and Waxhaw, and the petitioner 
stated that the service could be rendered with the same trucks that 
now are operated between Hamlet and Monroe during its layover 
period at Monroe with very little additional expense, and the service 
rendered thereby would greatly enhance the public convenience and 
necessity for additional service at Mineral Springs and Waxhaw. 

Therefore, it is ordered, that the petition be granted and that 
franchise certificate No. 422 now held by the Receivers of the Seaboard 
Air Line Railway, be amended to include that portion of the State 
Highway No. 75 between Waxhaw and Monroe upon presentation. 

This 9th day of December, 1937. 

Stanley Winborne, 

Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1080. ^ 

APPLICATION OF SHELBY TRANSIT COMPANY FOR AUTHOR- 
ITY TO OPERATE A BUS SERVICE IN THE CITY OF SHELBY, 
NORTH CAROLINA, AND OPERATE TO AND FROM POINTS 
MORE THAN ONE MILE OUTSIDE THE CITY LIMITS. 

Order 

This cause arises upon the application of the Shelby Transit Com- 
pany of Shelby, North Carolina to operate a bus service in the City of 
Shelby and to operate to certain points without the City limits, which 
are in excess of one mile, as set forth in the application. This case was 
heard on October 19, 1937 at 11:00 o'clock, A. M., in the Office of the 
Commission in Raleigh, North Carolina. 

At the hearing it developed that the petitioner had advertised the 
application for hearing in accordance with law, and a resolution was 



174 N. C. Utilities Commission 

presented from the City of Shelby approving the operation within said 
city. Mr. K. J. Kindley, attorney for the Queen City Coach Company, 
appeared in opposition and it developed from his questioning the peti- 
tioner that he desired to operate east on Highway No. 74 to the Fair 
Grounds, a distance of one and six-tenths miles outside the city limits, 
and west on Warren Street one-half mile beyond the city limits and 
over West Marion Street a distance of one and seven-tenths miles 
outside the city limits, and Lee Street and return to Marion and War- 
ren Streets, a distance of one and one-fourth miles outside the city 
limits. 

Under the law, the Commission has made it a rule to not object 
to intra-city operators operating a distance of one mile or less, as set 
forth in the Municipalities Act, which gives such intra-city operators of 
utilities the right to operate outside for a distance of one mile. Because 
of many families who live outside the city limits in the section of the 
Fair Grounds and in the vicinity of mills located in the western section 
of the city suburbs, it is thought that there is public convenience and 
necessity for the operation to these outside localities. Therefore, it is 

Ordered that the petition be granted; and it is further ordered 
that when the petitioner complies with the law by filing insurance and 
equipment specifications that certificate will be issued in favor of the 
petitioner for a period of three years, subject to renewal as provided 
by law. 

This the 18th day of December, 1937. 

Stanley Winborne, 

Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1094. 

SEASHORE TRANSPORTATION COMPANY, INCORPORATED, TO 
OPERATE BUS LINE FROM JACKSONVILLE VIA SWANSBORO 
TO MOREHEAD CITY. 

Order 

This cause arises upon the application of Seashore Transportation 
Company to extend its operation over Highway No. 24 between Mans- 
field and Jacksonville, N. C. via Swansboro. This application was filed 
with the Commission before the road was completed and hearing was 
held on December 8th, 1936 and petitioner was represented by Hon. 
D. L. Ward of New Bern, N. C. No opposition appeared as the applica- 
tion does nothing more than connect up two lines the applicant now 
operates. The question of convenience and necessity was thoroughly 
gone into in the application of the Queen City Coach Company, to 
operate from Kenansville to Richlands and Jacksonville and the rights 
between Jacksonville and Richlands, Highway 14 were reserved as a 
bridge line because many roads branch off at each end and such car- 
riers as have been granted certificates over that part of the road were 
notified that the Commission might find it necessary to route other 
carriers thereover, but it has been since discovered that this petitioner 



Decisions and Adjustments of Complaints 175 

does not now care to operate this portion on Highway 14 between 
Jacksonville and Richlands and he therefore withdrew that part from 
his petition. The question of public convenience and necessity was 
evidenced by the fact that it shortens the route between Morehead City 
and Jacksonville and points west, therefore it is 

Ordered that the petition be granted and that Certificate No. 122, 
now held by the Seashore Transportation Company, Incorporated be 
amended to cover said Highway 24 as applied for. 

This October 20, 1938. 

Stanley Winborne, 

Utilities Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 470. 

APPLICATION OF SMOKY MOUNTAIN STAGES, INC. FOR FRAN- 
CHISE FROM INTERSECTION OF N. C. HIGHWAY NO. 28, 
CHEROKEE COUNTY, AND NO. 294, RUNNING APPROXIMATE- 
LY SEVEN MILES OVER N. C. HIGHWAY NO. 294 TO INTER- 
SECTION WITH PROPOSED ROAD; THENCE ON TO TENNESSEE 
STATE LINE NEAR TURTLETOWN, TENN. DOCKET NO. 788. 

and 
IN RE: APPLICATION OF DAYTON BROTHERS BUS LINE, INC. 
FOR FRANCHISE FROM MURPHY OVER STATE HIGHWAY NO. 
28 TO RANGER, THENCE ON HIGHWAY NO. 294 TO INTERSEC- 
TION OF SAID HIGHWAY WITH OAK PARK ROAD, THENCE 
ON SAID OAK PARK ROAD TO INTERSECTION OF TVA ROAD 
TO TVA DAM ON HIAWASSEE RIVER, ACROSS SAID RIVER 
AND ON TO INTERSECTION OF SAID TVA ROAD WITH MUR- 
PHY-UNAKA ROAD, WHERE DAYTON BROTHERS BUS LINE, 
INC. OPERATES ON THEIR MURPHY TO MADISONVILLE, 
TENNESSEE OPERATION, COMPLETING A BELT LINE OPER- 
ATION BACK INTO MURPHY. DOCKET NO. 877. 

Order 

The above entitled matters came on for hearing before the UtiJties 
Commission upon the application of the Smoky Mountain Stages, Inc. 
and the application of the Dayton Brothers Bus Line, Inc., and were 
heard by me, the undersigned Commissioner, sitting alone, on Febru- 
ary 1st, 1937, in the Hearing Room of the Commission in the City of 
Raleigh. By consent of all parties, the two applications were heard at 
the same time. 

The Smoky Mountain Stages, Inc. was represented by Messrs. J. 
N. Moody and J. B. Gray, attorneys, both of Murphy, North Carolina. 

Dayton Brothers Bus Line, Inc. was represented by Honorable 
Harry P. Cooper and C. E. Hyde, Esq., attorneys, also of Murphy, North 
Carolina. 

It was made to appear at the hearing that Dayton Brothers Bus 
Line, Inc. is now operating buses from Franklin to Murphy to Unaka 



176 N. C. Utilities Commission 

to Tellico Planes on to Sweet Water, Tennessee, and that said operation 
began in the fall of 1935. 

The Federal Government is now beginning the construction of a 
power dam across the Hiawassee River, northwest of Murphy, about 
twenty miles by highway from Murphy. There are two routes from 
Murphy to the dam site. One road over which Dayton Brothers now 
operates is on the north side of Hiawassee River and the other on the 
west side along Highway 64 by Ranger to the intersection of Highway 
294, thence along Highway 294 a few miles to a new road from 294 to 
the dam. Both routes from Murphy to the dam are about the same 
distance. Both Dayton Brothers and the Smoky Mountain Stages, Inc. 
are asking for a franchise to the dam along Highways 64 and 294. The 
Smoky Mountain Stages, Inc. at present holds a franchise from Chatta- 
nooga, Tenn. through Murphy on to Asheville. Both applicants have 
pending before the Interstate Commerce Commission application for 
franchise from Turtletown, Tenn. to the dam and from the intersection 
of the Turtletown road with the Government road back to Murphy. 

Until recently there has been very little travel over the Dayton 
Brothers Bus Line, Inc., due to the fact that it was a thinly settled 
territory through which it operated, but the prospect of a large increase 
in travel between Murphy and the dam, due to the great number of 
workmen and employees who will be engaged in the construction of 
the dam, has made the acquisition of a franchise between Murphy and 
the dam very desirable. It is the contention of Dayton Brothers that 
they have given service to this section during the lean years and that 
now, when there is a prospect of receiving compensation for their 
service, that another stronger company which was not interested when 
the revenue was small, should not be allowed to take the cream of the 
revenue from a company which had operated during the period when 
the revenue barely covered operating costs. Both companies contend 
that they are amply able to provide sufficient and adequate service over 
both routes and that a service most convenient to the public would be 
that which provides a loop schedule, going from Murphy to the dam 
by one route and from the dam to Murphy by the other route, and vice 
versa. Dayton Brothers contend that this is the kind of service which 
they desire to give and that if they are confined to operation from 
Murphy to the dam on one side of the river and the Smoky Mountain 
Stages are given a franchise from Murphy to the dam on the other side 
of the river, that the public will not be as well served and the revenue 
will not be sufficient for either company to provide proper equipment 
to give the best service. 

This Commission has some leaning toward a pioneer operator and, 
if all things are equal, our inclination is to protect his franchise when, 
for any reason, the business over the line has improved to where it 
will make his operation compensatory. However, the first consideration 
of the Commission is public convenience and necessity and, in granting 
a franchise, the matter of transcendent importance to this Commission 
is what is best for the public interest, not merely for the immediate 
present but in the long view of the operation. 

At the request of both applicants, since the Federal Government 



Decisions and Adjustments of Complaints 177 

was the most interested in the operation between Murphy and the 
dam, this Commission communicated with Mr. Phifer, who is in charge 
of the construction of the dam, asking him which of the two operators 
would be preferable to the Government. Mr. Phifer replied, very dis- 
creetly, that the Government had no real preference, other than that 
adequate service be provided and that, so far, Dayton Brothers had 
provided satisfactory service. 

From a full consideration of the record and the conditions existing 
in the territory to be served and the respective equities of the appli- 
cants, the Commission has reached the conclusion that it should grant 
a franchise over both routes to Dayton Brothers during the construction 
of the dam and until it is completed. In reaching this conclusion, it is 
understood that . the road over which Dayton Brothers now operates 
will be closed, as the construction of the dam and the ponding of the 
water proceed, but it is also understood that the Government will con- 
struct a new road on the north side of the river from Murphy to the 
dam before the present road is closed. 

As there are various estimates as to the number of people who will 
reside in the Government town during the construction of the dam 
and of the number of employees who will commute between Murphy 
and the dam and intermediate points by both routes, the Commission 
in its concern for public convenience is not satisfied fully that Dayton 
Brothers will be able to provide all the service that is necessary, and 
that it may later appear, (and the Commission intends to keep in touch 
with developments), that more service is necessary and that it should, 
therefore, not deny the petition of the Smoky Mountain Stages, Inc., 
but hold said order on said petition in abeyance, so that a franchise 
may also be granted the Smoky Mountain Stages, Inc., should it later 
develop to the satisfaction of this Commission that further service is 
required to meet the public needs. To this end, this Commission will 
keep in constant touch with the representatives of the Federal Govern- 
mnt in charge of the construction of the dam. 

It has also been made to appear to the Commission that both appli- 
cants have applied to the Interstate Commerce Commission for inter- 
state franchises operating over the same routes, and should said Inter- 
state Commerce Commission grant to either, or both, of the applicants 
an interstate franchise, then, in the opinion of this Commission, either 
applicant, or both, if they should be engaged in interstate business over 
said routes, their service should be likewise extended to intrastate 
business. 

Wherefore it is ordered, that a franchise be granted to Dayton 
Brothers Bus Line, Inc. from Murphy over Highway 64 by Ranger to 
Highway 294 to the intersection of the Government road, thence along 
said Government road to the dam, thereby giving to said Dayton Broth- 
ers a franchise around the entire route from Murphy to the Hiawassee 
Dam both ways, until completion of the dam: Provided, that said 
Dayton Brothers comply with the rules and regulations of this Com- 
mission as to schedules, insurance, equipment and all other require- 
ments. 



178 N. C. Utilities Commission 

It is further ordered, that for reasons hereinbefore stated, the 
application of the Smoky Mountain Stages, Inc. is retained for further 
order of this Commission. 

This the 19th day of March, 1937. 

(Signed) Stanley Winborne, 

Commissioner. 
Dockets 788 and 877. 

APPLICATION OF SMOKY MOUNTAIN STAGES, INC., FOR 
AUTHORITY TO REVISE PASSENGER FARES WITHIN NORTH 
CAROLINA. 

Order 
Appearances: 

Joel W. Wright, for applicant. 

This application dated November 30, 1937, for authority to revise 
its intrastate bus fares was heard by me on December 13, 1937. 

It is contended that the present fares are very low and that because 
its volume of business is not as great as it is in other sections it is 
necessary that charges be increased to a fair level. Too, it is contended, 
cost of operations, wages, insurance, tire mileage, equipment and many 
other things that are included in the successful operation of a bus line 
have increased within the last two years. 

The proposed increased amount to nothing more than an adjust- 
ment in the present fares as, in a few instances, reductions result, in 
others, no changes are made, and still others only slight advances. To 
some extent the adjustment is essential because of revisions in highway 
mileages. 

Applicant's line operates over mountainous country between Ashe- 
ville, on the one hand, and Murphy and Franklin, on the other hand. 
Normal operation costs, due to such, are slightly higher than those of 
other companies generally. 

The fares proposed, it is indicated, do not exceed the rail fare of 
2 cents per mile recently promulgated by rail carriers, except in certain 
instances where fares have been published to and in "0" or "5" which, 
by the disposition of fractions, would slightly exceed this basis. 

In view of the many added expenses it is necessary, under present 
conditions, to obtain more revenue in order that applicant's line may 
operate profitably and at the same time render adequate and efficient 
service to its patrons. It is my opinion that the proposed fares are not 
unreasonable and that the application has been justified. It should be 
approved. 

It is therefore ordered. That application of Smoky Mountain 
Stages, Inc., dated November 30, 1937, be, and the same is hereby, 
approved, effective at the same time increased interstate fares which 
have been revised will become effective. 

This 17th day of December, 1937. 

Stanley Winborne, 

By order of the Commissioner: Commissioner. 

R. O. Self, Chief Clerk. 

Docket No. 1153. 



Decisions and Adjustments of Complaints 179 

APPLICATION OF SMOKY MOUNTAIN STAGES, INC. FOR 
FRANCHISE FROM INTERSECTION OF NORTH CAROLINA 
HIGHWAY NO. 64 (FORMERLY NO. 28), CHEROKEE COUNTY, 
AND NO. 294, RUNNING APPROXIMATELY SEVEN MILES 
OVER NORTH CAROLINA HIGHWAY NO. 294 TO INTERSEC- 
TION WITH PROPOSED ROAD; THENCE ON TO TENNESSEE 
STATE LINE NEAR TURTLETOWN, TENN. DOCKET NO. 788. 

Order 

On February 1st, 1937, the application of the Smoky Mountain 
Stages, Inc. for a franchise for passenger bus operation over the routes 
set out in the caption above, was heard conjointly with the application 
of Dayton Brothers Bus Line, Inc. for a similar franchise between the 
termini in both applications over a slightly different route. 

On the 19th day of March, 1937, this Commission issued an order 
in Docket 877 granting to the Dayton Brothers Bus Line, Inc. a passen- 
ger bus franchise over the routes set out in said order. At that hearing 
it was made to appear that the Dayton Brothers Bus Line, Inc. had 
been operating between Murphy and the Hiawassee Dam for some 
time; that they had prior rights to the operation; that there was not 
enough business for two operators and that they were prepared to give 
all the service necessary. This Commission, at the time, had some doubt 
about whether the said Dayton Brothers were prepared to give ade- 
quate service, but it decided to make further investigations and, for 
that reason did not pass upon the application of the Smoky Mountain 
Stages, Inc., but retained same for further order of this Commission. 

Since the 19th day of March, 1937, the Smoky Mountain Stages, 
Inc. has secured an interstate franchise from Murphy to the Hiawassee 
Dam over the same route specified in its application to this Commis- 
sion. Also this Commission had photographs made of the buses used 
by Dayton Brothers, Inc. and has made an investigation as to the kind 
and sufficiency of service which was being provided by said Dayton 
Brothers Bus Line, Inc. Furthermore, complaints have reached this 
office to the effect that the Government employees engaged in the 
construction of the Hiawassee Dam are inconvenienced and incom- 
moded by insufficient service and inadequate equipment which the said 
Dayton Brothers are providing between Murphy and said Hiawassee 
Dam. 

Upon consideration of all the facts, the Commission has now 
reached the conclusion that the Smoky Mountain Stages, Inc. should 
be granted an intrastate franchise, so that it can engage in intrastate, as 
well as interstate business between said points, and that there is a 
decided public need and necessity for said service. 

Wherefore it is ordered, that a franchise be issued to the Smoky 
Mountain Stages, Inc., upon its compliance with the usual requirements 
of the Commission as to insurance, et cetera, to operate passenger 
busses on schedules, to be approved by this Commission, from the 
intersection of North Carolina Highway, No. 64 (formerly No. 28) 
Cherokee County, and No. 294 running over North Carolina Highway 
No. 294 to the intersection of No. 294, with a new road leading to the 



180 N. C. Utilities Commission 

Hiawassee Dam site, a distance of about 41/2 miles from said last 
named intersection; also from the intersection of No. 294 and the new 
road along said No. 294 to the Tennessee State line near Turtletown, 
Tenn. The Smoky Mountain Stages, Inc. now holds a franchise from 
Murphy to the intersection of routes Nos. 64 and 294, and the intention 
of this order is to extend said franchise rights from said intersection of 
Nos. 64 and 294, along No. 294 to the Tennessee State line with a side 
operation from route No. 294 over the new road to the Hiawassee Dam. 

This the 22nd day of December, 1937. 



(Signed) Stanley Winborne, 

Utilities Commissioner. 



Docket No. 788. 



APPLICATION J. W. SNOW BUS LINE FOR FRANCHISE FROM 
PACK SQUARE IN ASHEVILLE, N. C. TO FARMER'S FEDERA- 
TION BUILDING ON HIGHWAY NO. 20, AND RETURN. 

Order 
This cause arises upon the application of J. W. Snow Bus Line of 
Biltmore, N. C. for franchise certificate to operate buses for the trans- 
portation of passengers from Pack Square in Asheville, N. C, south 
along Biltmore Avenue to Biltmore, N. C, thence over State Highway 
No. 20 (Fairview Road) to the Farmer's Federation Building, and 
return over same route, and was heard March 12, 1937 at 2:00 o'clock 
P.M. in the office of the Commission. 

Mr. S. M. Cathey, attorney at Asheville, N. C, represented the peti- 
tioner at the hearing. No protest to the application was filed either 
before or after the hearing. It was presented in evidence at the hearing 
that the hearing had been advertised according to law. The petitioner 
presented a petition signed by several hundred people who live along 
the route, and also other evidence; all of which was intended to, and 
does prove public convenience and necessity. Therefore, it is 

Ordered that the petition be granted and that certificate issue if 
and when the petitioner has complied with the law by filing insurance 
and equipment specifications and buying motor vehicle tags upon 
authority from this office. 

This May 12, 1937. 

Stanley Winborne, 

Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 893. 



Decisions and Adjustments of Complaints 181 

APPLICATION OF THURSTON MOTOR LINES TO EXTEND ITS 
PRESENT FRANCHISE ROUTES: (1) BETWEEN WILSON AND 
SNOW HILL VIA STANTONSBURG OVER NORTH CAROLINA 
HIGHWAY NO. 58 AND NO. 102; (2) BETWEEN TARBORO AND 
KINSTON VIA CRISP, FOUNTAIN, FARMVILLE AND SNOW 
HILL OVER U. S. HIGHWAY NO. 258; (3) BETWEEN ROCKY 
MOUNT AND NEW BERN VIA PINE TOPS AND GREENVILLE 
TO VANCEBORO OVER NORTH CAROLINA HIGHWAY NO. 43, 
THENCE VIA ASKIN AND BRIDGETON OVER U. S. HIGHWAY 
NO. 17; (4) BETWEEN BETHEL AND KINSTON VIA GREEN- 
VILLE, AYDEN, GRIFTON AND GRAINGERS OVER NORTH 
CAROLINA HIGHWAY NO. 11. 

Order 
This is an application of Thurston Motor Line, Wilson, North 
Carolina, for franchise certificates to operate freight carrying service 
over the following routes: 

1. Between Wilson and Snow Hill via Stantonsburg over North 
Carolina Highways No. 58 and No. 102. 

2. Between Tarboro and Kinston via Crisp, Fountain, Farmville 
and Snow Hill over U. S. Highway No. 258. 

3. Between Rocky Mount and New Bern via Pine Tops and 
Greenville to Vanceboro over North Carolina Highway No. 43, 
and thence via Askin and Bridgeton over U. S. Highway No. 17. 

4. Between Bethel and Kinston via Greenville, Ayden, Grifton, 
and Graingers over North Carolina Highway No. 11. 

There appeared in opposition to the granting of the franchise the 
Norfolk Southern Bus Corporation and the Norfolk Southern Rail- 
road; the Capital Coast Express Company, Clayton, North Carolina; 
Habit Brothers, Norfolk, Virginia; Atlantic Coast Line Railroad Com- 
pany; and Railway Express Agency, 

The Capital Coast Express Company operates a freight carrying 
service from Raleigh to New Bern via Goldsboro and Kinston with 
a service via Snow Hill, and Habit Brothers operates a freight carry- 
ing service from Norfolk to New Bern via Williamston, Wadington 
and Vanceboro. 

The applicant proposes a daily service over each of the routes for 
which certificate is sought and shows that at the time of the hearing 
it owned sufficient equipment to operate the franchise routes then 
operated by it and the routes for which certificates are sought. The 
evidence discloses the net worth of the applicant to be sufficient to 
enable it to render the service proposed if certificate is granted for 
each of the routes for which applicantion was filed. 

The Capital Coast Express Company objected to the granting of 
the Franchise because it was contended the proposed service would 
permit a duplication in part over lines operated by Capital Coast 
Express Company; would provide competitive pick-up business in the 
town to which or through which the applicant and the Capital Coast 
Express Company operates, and that no better service can be offered 
than was then being furnished by the Capital Coast Express Company 
to the territory through its existing operation. 



182 N. C. Utilities Commission 

Habit Motor Lines objected to the granting of the franchise cer- 
tificate to the applicant because the proposed service would duplicate 
its service between Vanceboro and New Bern and would tend to take 
traffic from that line destined for Norfolk. 

The Norfolk Southern Bus Corporation objected to the granting 
of the franchise because of its pending application to the Interstate 
Commerce Commission for franchise covering the same territory. 

The Norfolk Southern Railroad, the Atlantic Coast Line Railroad 
and Railway Express Agency each objected to the granting of the 
franchise upon the contention that adequate service by existing trans- 
portation agencies was available to the entire territory proposed to 
be served by the applicant. 

Several witnesses, not connected with the applicant, testified that 
the service was needed in order to serve the territory through which 
th applicant proposed to operate. It was pointed out by these witnesses, 
as well as by witnesses connected with the applicant, that no franchise 
carrier operated by direct routes from Wilson, Rocky Mount, Tarboro, 
and Bethel through the territory to Snow Hill, Kinston, and New 
Bern, and that there was considerable demand for such service for 
the delivery of less than truck load shipments of commodities dis- 
tributed throughout the entire territory. 

Several petitions were presented by the applicant asking that the 
service be provided and the Capital Coast Express Company presented 
petitions to the effect that its service was satisfactory. The evidence 
further disclosed that scattered throughout the territory are located 
small stores and other enterprises, which at the present time have no 
service except from the railroad and express companies at points lo- 
cated some distance away. It appeared that at some of these points 
neither the railroad or express companies maintained agents and that 
for small shipments the receivers for freight so located were greatly 
inconvenienced. 

The applicant already holds franchise certificate for operation be- 
tween Wilson, Tarboro, Greenville and Rocky Mount. It proposes this 
additional service in order to provide for the entire territory a co- 
ordinated truck service for the distribution of commodities required 
throughout the territory. The applicant disclaims any desire to inter- 
fere with the East-West business then being handled by Capital Coast 
Express Company and with the Norfolk Business From New Bern and 
"Vanceboro and intermediate points by Habit Brothers. In the testi- 
mony, the applicant proposed that the Commissioner limit the fran- 
chise certificate in connection with the third route, for which certifi- 
cate is sought, by prohibiting the applicant from taking at New Bern 
and at Vanceboro and intermediate points shipments for Norfolk, 
Virginia. In the argument the applicant proposed that the franchise 
in connection with the second route, for which certificate was sought, 
be limited by prohibiting it from taking at Snow Hill and at Kinston 
or at intermediate points shipments for either Snow Hill or Kinston 
or intermediate points. 



Decisions and Adjustments of Complaints 183 

The evidence does not disclose that with the franchise so limited 
either of the truck companies now operating in the territory would 
be materially affected. The business interchanged between the ap- 
plicant and the Capital Coast Express Company at Goldsboro is not 
of sufficient volume to adversely affect the Capital Coast Express Com- 
pany if the franchises are granted. It does not appear from the evi- 
dence that the applicant attempts to handle East and West business 
at points where it now touches Capital Coast Express Company oper- 
ation nor Norfolk business at those points where the applicant now 
touches the operation of Habit Brothers. There was some suggestion 
in the evidence that the business from Wilson, Rocky Mount, Tarboro, 
and Bethel might be increased if a better service was provided as 
proposed by the applicant, but this evidence is not conclusive nor does 
it tend to show that the Capital Coast Express Company does not, 
at the present time, render adequate service along the route through 
which it operates. 

It is not the purpose of this Commissioner to grant any franchise 
for any operation which will destroy existing operations which serve 
a useful purpose. It appears that if the applicant should be limited 
in its operation so as not to interfere with the business of either 
Capital Coast Express Company or Habit Brothers, service could be 
extended to the proposed territory without injury to any existing 
agency of transportation. This is borne out by the fact that Snow Hill, 
at the present time, has transportation facilities only through the 
Capital Coast Express Company operating either from Goldsboro or 
Kinston. Its only railroad has been taken up and witnesses testify 
that a service from Wilson, Rocky Mount and other points in that 
general territory was needed to serves the public at Snow Hill. It is, 
also, a well-known fact that a transportation service such as that pro- 
posed by the applicant, if not injuriously affecting other agencies of 
transportation, serve a useful purpose. 

Upon all the evidence, the Commissioner is of the opinion that 
public convenience and necessity demands and will demand the serv- 
ice proposed by the applicant, limited as heretofore indicated and so 
as to effect existing carriers as little as possible. These limitations 
should prohibit the applicant from taking local shipments at Golds- 
boro, Kinston, and New Bern or intermediate points for delivery at 
Goldsboro, Kinston or New Bern, Selma, Smithfield, Raleigh, or in- 
termediate points, and at Snow Hill the applicant should not take 
shipments for delivery at Goldsboro, Kinston, New Bern, or Selma, 
Smithfield, Clayton, Raleigh or at intermediate points, on U. S. High- 
way No. 70 between Raleigh and New Bern. These limitations are in 
addition to those proposed during the hearing. 

The applicant if financially able to provide the necessary equip- 
ment and operate the necessary schedules, and in view of the existing 
demand is entitled to a certificate subject to the limitations herein 
proposed. The certificate should be issued as one franchise so that the 
limitations suggested may not be confusing. 



184 N. C. Utilities Commission 

Whereupon it is ordered that franchise certificate be and the same 
is hereby issued to Thurston Motor Lines to operate freight carrying 
service between Wilson and Snow Hill via Stantonsburg over North 
Carolina Highways No. 58 and No. 102; between Tarboro and Kinston 
via Crisp, Fountain, Farmville, and Snow Hill over U. S. Highway 
No. 258; between Rocky Mount and New Bern via Pine Tops and 
Greenville to Vanceboro over North Carolina Highway No. 43, and 
thence via Askin and Bridgeton over U. S. Highway No. 17; and be- 
tween Bethel and Kinston via Greenville, Ayden, Grifton, and Grain- 
gers over North Carolina Highway No. 11, subject however to the 
following limitations: 

1. That Thurston Motor Lines shall not accept at New Bern and 
at Vanceboro and at points intermediate shipments destined 
to Norfolk. 

2. That Thurston Motor Lines shall not accept at Snow Hill, 
Goldsboro, Kinston, and New Bern and at intermediate points 
shipments destined for Snow Hill, Goldsboro, Kinston, and 
New Bern or intermediate points. 

This the 31st day of J,uly, 1937. Stanley Winborne, 

Utilities Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 742. 

APPLICATION OF THURSTON MOTOR LINES TO EXTEND ITS 
PRESENT FRANCHISE ROUTES; (1) BETWEEN WILSON AND 
SNOW HILL VIA STANTONSBURG OVER NORTH CAROLINA 
HIGHWAY NO. 58 AND NO. 102; (2) BETWEEN TARBORO AND 
KINSTON VIA CRISP, FOUNTAIN, FARMVILLE AND SNOW 
HILL OVER U. S. HIGHWAY NO. 258; (3) BETWEEN ROCKY 
MOUNT AND NEW BERN VIA PINE TOPS AND GREENVILLE 
TO VANCEBORO OVER NORTH CAROLINA HIGHWAY NO. 42, 
THENCE VIA ASKIN AND BRIDGETON OVER U. S. HIGHWAY 
NO. 17; (4) BETWEEN BETHEL AND KINSTON VIA GREEN- 
VILLE, AYDEN, GRIFTON AND GRAINGERS OVER NORTH 
CAROLINA HIGHWAY NO. 11. 

Order 
Now COMES The Capital Coast Express Company and files objec- 
tions and exceptions to the order dated July 31, 1937, in the above 
matter, which exceptions have been taken under due and careful 
consideration and it is 

Ordered that said exceptions each and severally are hereby over- 
ruled. 

This the seventeenth day of September, 1937. 

Stanley Winborne, 

■D J -c 4-u /-I • • Utilities Com,m,issioner. 

By order of the Commission: 

R. O. Self, Chief Clerk. 

Docket No. 742. 



Decisions and Adjustments of Complaints 185 

PETITION OF TIDE WATER POWER COMPANY TO OPERATE 
UNDER FRANCHISE CERTIFICATE AS A MOTOR CARRIER FOR 
PASSENGERS OVER THE FOLLOWING ROUTE: BEGINNING 
AT OR NEAR THE COMPANY'S TRANSPORTATION TERMINUS 
AT FRONT AND PRINCESS STREETS AND OVER SUCH 
STREETS AS APPROVED BY CITY COUNCIL OF WILMINGTON; 
THENCE ON ROUTE 20 TO WRIGHTSVILLE BEACH VIA CAUSE- 
WAY AND BRIDGE TO WRIGHTSVILLE BEACH AND OVER 
SUCH STREETS AS MAY BE APPROVED BY WRIGHTSVILLE 
BOARD OF COMMISSIONERS; ALSO OVER ROUTE FROM CITY 
LIMITS OF WILMINGTON OVER OLD SHELL ROAD TO 
WRIGHTSVILLE SOUND. 

Order 
This cause arises upon the application of the Tide Water Power 
Company for authority to operate as above stated. This case was heard 
on May 12, 1937. 

The evidence disclosed that the Tide Water Power Company has 
been operating an electric line between Wilmington and Wrightsville 
Beach, and now operates street buses in the City of Wilmington. The 
petitioner in this case has been operating other utilities in Wilmington 
for many years. Because of the change from street car service in Wil- 
mington to motor vehicle service, and because a great many Wilming- 
ton people live in Harbor Island and at Wrightsville and are identified 
with the developments in and around Wrightsville Beach, there appears 
now to be a great demand for a change from the interurban service 
furnished by trolley line to motor vehicles. 

Inquiry as to the effect of the petition on transportation to persons 
living near and beyond the extreme terminus of the electric line on 
the beach was made by Mr. B. R. Huske of Fayetteville, who has 
interests on the island, and it appears that the bus service could not be 
extended as far as the trolley line now gives service. His interest was 
to request that the service be extended at least to the end of the present 
street railway service, but it developed that the Highway Commission 
is building a highway in that vicinity and if it becomes practicable to 
do so, it will probably be possible to give future motor bus service over 
this highway. Otherwise, the petitioner in this case could not be 
expected to extend service to the end of the present street railway 
unless some improved highway facility is placed there. 

The Queen City Coach Company, holder of the franchise between 
Wilmington and Carolina Beach, also appeared to make sure that 
the petition, if granted, would not encroach upon its rights, but 
entered no formal objections. 

The petitioner presented a resolution and ordinance passed by the 
Town of Wrightsville Beach, approving the application to the Com- 
mission for the use of buses there, and the same authority has been 
obtained from the City of Wilmington. It further appearing that the 
petitioner is willing and able to perform the service applied for, it is 
Ordered that the petition be granted over such routes and streets 
indicated in the caption above; and it is further ordered that when 



186 N. C. Utilities Commission 

the petitioner has complied with all the provisions of the law by filing 
with this Commission a description of motor vehicles which it desires 
to operate, and public liability and property damage insurance in a 
company licensed to do business in North Carolina, that certificate shall 
issue in favor of the petitioner above-named. 

This December 13, 1937. 

(Signed) Stanley Winborne, 

Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 377. 

APPLICATION OF WARD TRANSFER COMPANY TO OPERATE 
FREIGHT ROUTE FROM WILMINGTON TO DURHAM VIA CLIN- 
TON U. S. NO. 421; CLINTON TO DUNN VIA U. S. NO. 701 TO 
NEWTON GROVE AND NO. 55 TO DUNN; DUNN TO ERWIN VIA 
U. S. NO. 421; ERWIN TO RALEIGH VIA NO. 55 AND U. S. 15A; 
RALEIGH TO DURHAM VIA U. S. 15A, N. C. NO. 9 AND U. S. 
NO. 70. 

Order 

This case arises upon application of the Ward Transfer Company to 
operate out of Wilmington to Dunn, N. C. over the Highways men- 
tioned in the caption hereof. The case was set for hearing at 11:00 
o'clock A.M. on April 19th in the office of the Utilities Commission in 
Raleigh, N. C. The notice of said hearing was published in the issues 
of the News & Observer, Raleigh, N. C. on the 7th, 8th and 9th of 
April, in Wilmington in the issues of the Wilmington Morning Star on 
the 6th, 7th, and 8th of April and in the Durham Sun of Durham, N. C. 
in its issues of the 6th, 7th, and 8th of April, 1938, in accordance with 
Paragraph B of Section 3 of Chapter 136, Public Laws of 1927 as 
amended. 

The petitioner presented a number of witnesses to prove public 
convenience and necessity and it was shown that at several places 
along the proposed route, either little or no direct service is now being 
given by trucks and that at many points on the proposed route the 
direct service into and out of Wilmington would be an improvement. 
While the evidence showed that many points named on the proposed 
route have more or less direct service by two or 'more carriers, the 
evidence of all witnesses was conclusive that the applicants' proposal 
to give direct service would be a great improvement and would 
enhance the convenience and establish a necessity for the service 
offered in the application. The hearing was adjourned and it was 
announced that certificate would be granted. 

Before this order was written and before the expiration of the 
30-day rule in the Commission's practice and procedure. Attorney 
Norman Block of Greensboro, N. C. filed an application on behalf of 
Hunt Motor Express, Thurston Motor Lines, Capital Coast Express, 
Motor Transit Company, Black's Motor Express, Miller Motor Express 
and P. & F. Motor Express, for a rehearing on the ground that these 



Decisions and Adjustments of Complaints 187 

carriers did not receive specific notice of the hearings in this applica- 
tion. While the Commission is of the opinion that the notices given 
under Paragraph B of Section 3 of Chaper 136, Public Laws of 1927 
as amended complied with the law as to notices, it is the desire of the 
Commission to not deprive the intervenors of an opportunity to have 
their contentions heard, but the applicant in this case proceeding on 
the advices at the close of the hearing purchased equipment and now 
desires to begin operation. Therefore, subject to hearing and determi- 
nation of the motion to re-hear, 

It is ordered, that the applicant be granted a certificate when the 
applicant in this case has complied with the law by filing equipment 
specifications and insurance, and Certificate will issue conditioned as 
herein stated. Operation may begin after issuance of the Certificate, 
when the petitioner makes the necessary compliance as to filing tariffs 
with this office and. 

It is further ordered, that a copy of this order shall be the au- 
thority for the Motor Carriers Tariff Bureau to publish petitioners 
rates. 

This the fifteenth day of June, 1938. 

Stanley Winborne, 

By order of the Commissioner : Utilities Commissioner. 

R. O. Self, Chief Clerk. Docket No. 1218. 

APPLICATION OF WARD TRANSFER COMPANY TO OPERATE 
FREIGHT ROUTE FROM WILMINGTON TO DURHAM VIA CLIN- 
TON U. S. NO. 421; CLINTON TO DUNN VIA U. S. NO. 701 TO 
NEWTON GROVE AND NO. 55 TO DUNN; DUNN TO ERWIN VIA 
U. S. NO. 421; ERWIN TO RALEIGH VIA NO. 55 AND U. S. 15A; 
RALEIGH TO DURHAM VIA U. S. 15A, N C. NO. 9 AND U. S. 
NO. 70. 

Order 

This cause coming on to be heard upon the exceptions of Motor 
Transit Company Capital Coast Express Company, et al., to the order 
of June 15, 1938, and being heard, the said exceptions and each of them 
are overruled. 

A franchise certificate is not exclusive, and the statute gives the 
Commissioner the right to grant an additional franchise. 

Any former application which has been withdrawn, or non-suited, 
has nothing to do with the application and hearing April 19, 1938, and 
the applications were materially different. 

There has never been any second hearing in this matter, and the 
notices were published strictly in accordance with the statute. 

C. S. 2613 (1) f, cited in the exceptions says that the Commissioner 
may refuse to grant an application, where it would duplicate a previ- 
ously authorized similar class of service, unless it is shown that the 
existing operators, after thirty days notice, failed to provide the service 
required by the Commission. This section of the law was fully dis- 
cussed by this Com.mission in the case of Atlantic Greyhound Lines 
against the Carolina Coach Company in its order in said case, dated 



188 N. C. Utilities Commission 

July 31, 1935, in which it was held contrary to the position taken in the 
exceptions. It was open to anyone who desired to object or oppose the 
granting of the certificate to show that service was being given, which 
was not done, and the statute does not require the Commissioner to 
require such proof, and over the operation of the route in question, it 
was proven that there was no service, except occasional, or contract 
haulers, except at some junction points. 

There was no delay in the hearing on Docket 1218 because of the 
request of the applicant, as is referred to in the statute, C. S. 2613 (1) g, 
but the applicant, to the contrary, had been requesting a hearing. All 
delay, if any, in the whole hearing was on account of the press of 
business upon the Commissioner. 

There was abundant evidence that there existed a public conveni- 
ence and necessity justifying the issuance of this franchise certificate, 
and the Commission so found and so stated in its order, which finding 
of fact is hereby reiterated. 

The Commission is not bound to take judicial notice in this one 
case or hearing, of all the records of all other cases or applications or 
hearings before it, any more than a Superior Court in trying one case 
is required to take judicial notice of all other records and cases 
previously heard and in its files when they have not been called to 
the attention of the Commission or have not been offered in evidence. 

There was abundant evidence that there is no direct service from 
Durham by Raleigh to Newton Grove and Clinton, and points South, 
but there is local service on the highway in question between Durham 
and Raleigh, and any service South of Raleigh would be by transfer, 
and from Wilmington to Clinton and Raleigh and Durham, there was 
no direct, regular service. 

The exceptions are apparently based upon the idea that this appli- 
cation in Docket 1218 is a continuation of a previous application. This 
is a misapprehension. It is entirely a new application, with new adver- 
tisement, and ample notice to all parties interested to be heard. A 
previous application covered a great deal more territory, touching 
many more points, and evidently a number of interested people who 
might have opposed the previous application, do not care to oppose 
the granting of this application and franchise certificate. 

The Commissioner, being of opinion that the hearing was in 
accordance with the law and practice in such case, and that ample 
notice was given to all parties to appear and oppose the application 
if they desired, and the evidence showing abundantly that there was 
need for the service, the exceptions are overruled except as hereinafter 
modified. The Commission in its discretion and with the consent of the 
petitioners modifies the previous order herein granted as follows: The 
petitioners shall not be allowed to take on any freight at Raleigh to 
be delivered in Durham nor any freight in Durham to be delivered in 
Raleigh, and the franchise certificate shall be so amended. 

This the 8th day of August, 1938. Stanley Winborne, 

By order of the Commissioner: Utilities Commissioner. 

R. O. Self, Chief Clerk. Docket No. 1218. 



Decisions and Adjustments of Complaints 189 

APPLICATION WARD TRANSFER COMPANY. 

Order 

This matter again comes before the North Carolina Utilities Com- 
mission upon exceptions filed September 3, 1938, to the overruling 
of exceptions heretofore filed by the Motor Transit Company, Capitol 
Coast Express Company, Barbour Motor Lines, Black's Motor Express, 
Hunt Motor Express, Thurston Motor Lines, Miller Motor Express, 
and P. & F. Motor Express, protestants, through their attorney, Mr. 
Norman Block, of Greensboro, North Carolina. 

Upon a consideration of each and all of the exceptions filed, the 
Commission finds that the matters and things therein set out in said 
exceptions have been previously considered by this Commission in 
reaching its conclusions set out in prior orders in this cause; and 
therefore each and all of said exceptions filed on September 3, 1938, 
are disallowed and overruled, to which the protestants again except 
and appeal to the Superior Court. 

It is therefore ordered, that the transcript of this case be certified 
to the Superior Court of Wake County. 

This the 8th day of September, 1938. 

(Signed) Stanley Winborne, 

Utilities CoTnmissioner. 
Docket No. 1218. 

APPLICATION WASHINGTON-ORIENTAL BUS LINE FOR FRAN- 
CHISE ON ROUTE 33 FROM WASHINGTON TO AURORA: 
ROUTE 306 FROM AURORA TO GRANTSBORO AND ROUTE 
302 FROM GRANTSBORO TO ORIENTAL. DOCKET 849. '- 

Order 

This matter coming on to be heard at 11 o'clock, on the 24th day 
of March, 1937, and being heard before his Honor, Stanley Winborne, 
Chairman Utilities Commission, and all parties being duly and regu- 
larly before the Court, the Washington-Oriental Bus Line being repre- 
sented by Mr. J. C. Meekins, Attorney, and the Seashore Transporta- 
tion Company being represented by Mr. John G. Dawson. 

It is hereby ordered and decreed that the application of the Wash- 
ington-Oriental Bus Line be and the same is hereby approved and the 
said Washington-Oriental Bus Line is granted franchise to operate 
over route as set out in caption hereof; subject, however, to the follow- 
ing conditions and restrictions: 

That the said Washington-Oriental Bus Line do not handle any 
passengers over the route set out in the franchise originating between 
Oriental and Grantsboro destined to points between Grantsboro and 
New Bern and/or beyond New Bern. 

And that the Seashore Transportation Company do not handle any 
passengers originating between Oriental and Grantsboro and/or des- 
tined to points between Grantsboro and Washington and/or points 
beyond Washington. 



190 N. C. Utilities Commission 

The above agreement between the two bus companies shall be 
effective if and when the Seashore Transportation Company be granted 
a franchise to operate from Oriental to New Bern under an applica- 
tion now pending before this Commissioner. 

It is further ordered that franchise certificate shall issue to the 
Washington-Oriental Bus Line when the applicant shall have complied 
with the law with reference to filing insurance. 
This, March 24, 1937. 
By Consent: 

Washington-Oriental Bus Line, 

By J. C. Meekins, Atty. 
Seashore Transportation Co., 
By John G. Dawson, Atty. 
Approved and Consented to by : 

Stanley Winborne, 

Utilities Commissioner. 
By R. O. Self, Chief Clerk. 
Docket No. 849. 

PETITION OF MARION HOLCOMBE AND VAUGHN HOLCOMBE, 
TRADING AS WEAVERVILLE BUS LINE, ASHEVILLE, NORTH 
CAROLINA. 

Order 

This cause arises upon the petition of the Weaverville Bus Line, 
which was filed with this office on April 2, 1937, and was set for hear- 
ing on Wednesday, May 19, 1937 at 3:00 o'clock P.M., in the office of 
the Commission in Raleigh, North Carolina. 

The petitioner asked for a franchise to operate a common carrier 
business over the following routes: Route "A", Broadway to Route 63 
to Woodfin; County Road to New Bridge; Route 69 to Weaverville; 
Route "B", Broadway to Route 63 to Woodfin; County Road to Burns- 
ville Hill; County Road to Elk Mountain Cotton Mill; Route 630 to 
Gorman's Bridge Temporary 63 across French Broad River to Craggy 
Station. Transfer Route "B" passengers to Route "A" bus at Burnsville 
Hill. 

Hearing was held as above stated and evidence was presented to 
the effect that notices were published in the papers according to law. 
Petitioner was represented at the hearing by Mr. George Pennell, 
Attorney at Law, Asheville, North Carolina, and was opposed by the 
Beaver Lake Bus Line, represented by Mr. Carl W. Green, Attorney 
at Law, Asheville, North Carolina, the ET & WNC Transportation 
Company, represented by Mr. W. H. Whisman, official of said com- 
pany, and the Queen City Coach Company, represented by Mr. K. J. 
Kindley, Attorney at Law, and Mr. J. H. Quattlebaum, official of said 
Queen City Coach Company. 

Evidence was presented that the petitioner was formerly a bus 
operator between Weaverville and Asheville but that during the 
depression, about 1932, had given up his certificate and had been 
operating since as a "for hire" operator. Evidence was also presented 



Decisions and Adjustments of Complaints 191 

which would indicate that the people in Weaverville needed some very- 
early service and some very late service into and out of Asheville 
because so many working people who work in Asheville live in 
Weaverville. If it were not for these commuting passengers, there 
would be no necessity for such a short line operation between the two 
points because of the numerous long distance buses into Asheville 
which pass through Weaverville from and to points west of Weaver- 
ville. Therefore, this Commission has been inclined to grant this 
certificate for these reasons. 

Prior to the hearing of this application, the petition of the Mars 
Hill Bus Line had been heard and granted, and the Mars Hill Bus 
Line, in giving Mars Hill College and the Town of Mars Hill service 
to Asheville, must of necessity run through Weaverville. Since the 
granting of the Mars Hill Bus Line's certificate and the beginning of 
operations by that line, the persons making the Weaverville Bus Line 
application have purchased the interests of the persons owning the 
Mars Hill Bus Line, therefore acquiring an operation not only from 
Mars Hill to Asheville but from Weaverville to Asheville, which 
apparently will serve all the purposes desired by the Weaverville Bus 
Line operators, with the exception of the routing out of Asheville 
through Woodfin over Highways Nos. 63 and 630, so as to intersect 
with Highways Nos. 19 and 23 near Beaver Lake Dam bridge. There- 
fore, the Commission dismisses Docket 993 because of the purchase of 
the Mars Hill Bus Line by the persons composing the Weaverville Bus 
Line, but is reserving the right to amend the Mars Hill Bus Line's cer- 
tificate, without hearing, upon the application of Marion and Vaughn 
Holcombe to permit the said Mars Hill Bus Line to operate into Ashe- 
ville via Woodfin and over such other roads as may be set out in the 
application of Docket 993, other than Highways Nos. 19 and 23. This 
is being done for the reason that it is thought that there may be more 
business for a short line via Woodfin than straight up the main high- 
way from Weaverville into Asheville since there are ample schedules 
on the main highway between Weaverville and Asheville which run 
inter-city, and it is not desired to confuse the record nor the carriers 
by the issuance of certificates that overlap each other on the same 
highways. 

Therefore, it is ordered that until and unless the present owners 
of the Mars Hill Bus Line make a request to include in its certificate, 
without hearing, the road via Woodfin, conditioned upon abandoning 
the main highway No. 23 between New Bridge and Asheville, which 
is now served by Beaver Lake Bus Line practically all within the city 
limits, the petition in this case is dismissed. 

Dated at Raleigh, North Carolina, this October 18, 1937. 

Stanley Winborne, 

Utilities Commissioner, 
By order of the Commissioner : 

R. O. Self, Chief Clerk. 
Docket No. 993. 



192 N. C. Utilities Commission 

PETITION E. O. WOODIE FOR FRANCHISE CERTIFICATE TO 
OPERATE PASSENGER MOTOR VEHICLES FROM N. C. STATE 
LINE NEAR TRADE, TENN.; HIGHWAY 16 TO MOCKS VILLE, 
N. C. VIA WARRENSVILLE, WEST JEFFERSON, JEFFERSON, 
SPARTA, ROARING GAP, ELKIN, BOONEVILLE AND YADKIN- 
VILLE. 

Order 
This cause arises upon the application of E. O. Woodie for a fran- 
chise certificate under Chapter 136, PubUc Laws 1927 and amendments 
thereto, to transport passengers between the North Carolina State Line 
and Mocksville, N. C, via Warrensville, West Jefferson, Jefferson, 
Sparta, Roaring Gap, Elkin, Booneville and Yadkinville. This applica- 
tion was originally made to extend the line into Salisbury but the 
application was amended at the hearing to eliminate that portion of 
the highway between Mocksville and Salisbury via Cooleemee. 

Hearing was held on this application on February 26, 1937 and no 
opposition to the application was presented to the Commission, either 
before or at the hearing, and it being in evidence that the particular 
road in question was not covered by any application and that the towns 
mentioned along the routes of the application had no direct service 
between said towns mentioned herein, and that the only service 
between said towns now have from such points as are named herein 
are very circuitous. 

Evidence was presented to the effect that the granting of this cer- 
tificate is in the interest of public convenience and necessity and that 
the granting of same will be very beneficial to the people who live 
along the line. Therefore, it is 

Ordered that the petition be granted and that the certificate now 
held by Mr. Woodie, No. 378, be amended to include the route outlined 
in Docket No. 824, as amended at the hearing of the application on 
February 26, 1937. 

This, the 22nd day of May, 1937. 

Stanley Winborne, 

Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 824. 

AMENDMENT TO COMMISSION'S ORDER DATED JUNE 16, 1937, 
DEALING WITH BUS FRANCHISES BETWEEN MOCKSVILLE 
AND SALISBURY UNDER APPLICATION OF E. O. WOODIE, 
ATLANTIC GREYHOUND, QUEEN CITY COACH COMPANY, 
AND OTHERS. 

Order 

Amending Order of June 16, 1937 
Whereas, it appears that the order of the Commission dated May 
22, 1937, in connection with Docket No. 824, disposed of that case in 
accordance with the hearing of February 26, 1937; and, whereas, it 



Decisions and Adjustments of Complaints 193 

appears that the order of the Commission dated June 16, 1937 had 
reference to this same case, by inadvertance, it is, therefore 

Ordered that the reference to Docket No. 824 in the Commission's 
order of June 16, 1937, be, and the same is hereby stricken out; and it 
is FURTHER ORDERED that the Order of May 22, 1937 in the matter of 
Docket No. 824 be, and the same shall stand as issued. 



Stanley Winborne, 

Commissioner. 



This the 22nd day of June, 1937. 

By order of the Commissioner : 

R. O. Self, Chief Clerk. 
Docket No. 824. % 

City of Asheville to the Commission. Complaint of bus terminal 
facilities. Lease expired and new station built. Docket No. 616. 

Utilities Commission to Norfolk Southern Railroad Company. In re 
extending operation of rail bus between Beaufort and Goldsboro 
through to Raleigh. Dismissed. Docket No. 433. 

Arden Stage Company to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Asheville to Air- 
port, leaving Asheville at Pack Square and go to Biltmore Avenue, 
Brook, intersection of Sweeten Creek Road, Arden, Cane Creek Road, 
Fletcher, and to Airport. Granted. Docket No. 1302. 

Bald Mountain Coach Car to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from Asheville 
through the Forks of Ivy, up California Creek, top of the Murray 
Mountain, down Laurel up Little Creek to Sam's Gap, the Tennessee 
line. Matter set for hearing and no one appearing for petitioner, appli- 
cation dismissed. Docket No. 943. 

Blizard Motor Express, Inc., to the Commission. Application for 
authority to purchase franchise certificate No. 102 from Blizard Motor 
Express, with rights, titles and interests under said operation, and 
authority to operate from Mount Airy to Greensboro via Winston- 
Salem and Kernersville over Highways Nos. 66 and 60. Granted. 
Docket No. 1225. 

Boone Transfer Company to the Commission. Application for 
authority to sell franchise certificate No. 334 to Smith's Transfer Com- 
pany, Inc. Granted. Docket No. 958. 

Booze Truck Lines to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from intersection of 
Virginia and North Carolina State line with U. S. Highway No. 220, 
south through Price, Stoneville, and Mayodan to Madison; thence via 
U. S. No. 311 through Walnut Cove and Walkertown to Winston- 
Salem. Motor Express Company holding certificate No. 330 and oper- 
ating as interstate carrier from Roanoke, Va. to Winston-Salem via 
Martinsville, Va. (a wholly owned subsidiary of the Booze Truck 
Lines) applies for transfer of franchise and assets to Booze Truck 
Lines. Granted. Docket No. 932. 



194 N. C. Utilities Commission 

Buckner Transfer Company to the Commission. Application for 
authority to Purchase Boone Motor Express and operate from Ashe- 
ville to Spruce Pine, over Highways Nos. 19, 23 and 23E, via Grace, 
Weaverville, Stockville, Ivy, Bald Creek, Burnsville, Micaville and 
Spruce Pine. Granted. Docket No. 1084. 

C. & S. Motor Express Company to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier over new route 
from North Wilkesboro to Winston-Salem by way of Roaring River 
and Ronda. Over the new road to be constructed from North Wilkes- 
boro, on the north side of the Yadkin River by way of Roaring River 
and Ronda to Elkin. Road not constructed. Dismissed subject to motion 
to re-open. Docket No. 316. 

C. & T. Motor Express Company to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier from States- 
ville to Elkin via U. S. No. 211; Elkin to Fairview via N. C. No. 268; 
Fairview to Mount Airy via U. S. No. 601. Withdrawn. Docket No. 897. 

Cape Fear Motor Lines to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from Wilmington 
to Jacksonville over No. 17; Jacksonville to Kinston over No. 258; 
Kinston to Tarboro via Greenville over No. 11, from Tarboro to Rocky 
Mount over No. 64, and return over same route to Wilmington. Dis- 
missed for want of prosecution. Docket No. 955. 

Carolina Coach Company to the Commission. Plans for new bus 
station at Burlington approved. Docket No. 884. 

Carolina Coach Company to the Commission. Approval of operation 
of shuttle bus from Williamston to Tarboro. Approved. Docket No. 981. 

Carolina Coach Company to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier on N. C. No. 705 
from U. S. No. 27 to Hemp and return on same route to U. S. No. 27; 
also on N. C. No. 742 from Red Cross to Oakboro and return on same 
route to Red Cross. Granted. Docket No. 1024. 

Carolina Motor Express Bureau vs. Eastern Carolina Warehouse 
Association, Inc. Complaint that defendant is engaged in transporta- 
tion of alcoholic beverages or liquors from warehouse at Wilson, and 
is subject to provisions of 1937 N. C. Motor Vehicle Carrier Act. Dis- 
missed. Docket No. 1057. 

Carrington and Jones Transfer Company to the Commission. Appli- 
cation for authority to sell and transfer certificate No. 405 to P. E. 
Calloway with Certificate No. 438. Granted. Docket No. 1133. 

Carter, A. E. to the Commission. Application for authority to sell 
or transfer interest and franchise certificate No. 433 to Vaughan Hol- 
combe and M. J. Holcombe. Granted. Then W. L. Edge applied to the 
Commission for authority to sell or transfer interest and franchise cer- 
tificate No. 433 to Vaughan Holcombe and M. J. Holcombe. Granted. 
Certificate is amended later to operate under name of Mars Hill- 
Weaverville Bus Line. Docket No. 1099. 

Chapel Hill and Durham Bus Line to the Commission. Application 
for franchise certificate to operate as motor vehicle carrier between 



Decisions and Adjustments of Complaints 195 

Durham and Chapel Hill as set out in Franchise No. 423 to J. L. 
Copeland. Granted. Docket No. 921. 

Charlotte-Raleigh Bus Line, Inc., and Carolina Coach Company to 
the Commission. Application for authority to transfer franchise No. 53 
(Charlotte-Raleigh Bus Line) to Carolina Coach Company. Granted. 
Docket No. 1060. 

Cherryville Bus Line to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Gastonia to Cherry- 
ville via N. C. No. 74 to Bessemer City, and thence over No. 274 to 
Cherryville. Withdrawn. Docket No. 1200. 

City Coach Company to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Bus Station, Gas- 
tonia, to Ridge via U. S. No. 321, via Wingate Mills, Myers Mills, 
Pinkney and Hanover. Granted. Docket No. 827. 

Comer Motor Express to the Commission. Application for authority 
to purchase franchise certificate No. 408, W. J. Jordan, Owner, and to 
operate over Route No. 121 from Kinston to Richlands; via Route No. 
24 to Jacksonville; and via Route No. 30 to Wilmington. Granted. 
Docket No. 1204. 

Concord-Albemarle Bus Line to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier from Concord 
to Albemarle over No. 73. Set for hearing but no one appearing for 
applicant, case dismissed. Docket No. 878. 

Cooper, C. W., to the Commission. Application for franchise cer- 
tificate to operate as motor vehicle carrier from Rockwell to Kannapo- 
lis via N. C. No. 152 and No. 29. Withdrawn. Docket No. 1254. 

Dickson Transfer Company to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier over standard 
highways or streets between Winston-Salem and Charlotte, via Albe- 
marle, Salisbury, Lexington, High Point, Greensboro, Thomasville and 
Kernersville; also via Concord, Kannapolis, Statesville and Mocksville 
for pick-up and delivery at any of the points mentioned or inter- 
mediate points en route. Withdrawn. Docket No. 868. 

ET & WNC Motor Transportation Company. Petition by Citizens of 
Yancey and Mitchell Counties for more adequate service between Elk 
Park and Asheville. ET & WNC purchased by Queen City Coach Com- 
pany. Withdrawn. Docket No. 1227. 

Finney, E. R. to the Commission. Application for franchise certifi- 
cate to operate as motor vehicle carrier from U. S. No. 21, from Brooks 
X Roads, to State Road, N. C. Highway No. 268; from Ronda to Burch 
Station. Dismissed for want of prosecution. Docket No. 926. 

Forbes Transfer Company to the Commission. Application for fran- 
chise certificate to operate as a restricted common carrier. Set for 
hearing; application then made for interstate franchise and granted. 
Former application dismissed. Docket Nos. 908 and 1902. 

Frederickson Motor Express Corporation to the Commission. Appli- 
cation for franchise certificate to operate as motor vehicle carrier 
from Charlotte to Denton over No. 271 through Denver and No. 73 
to Newton. Dismissed for want of prosecution. Docket No. 1000. 



196 N. C. Utilities Commission 

Frederickson Motor Express vs. Transportation, Inc., Smith's Trans- 
fer Company and Smith's Transfer Company, Inc. Complaint of oper- 
ating intrastate under franchise for which they did not hold rights. 
Adjusted in conference. Docket No. 1311, 

Geringer, Hurley, d/b/a East Coast Freight Line vs. O. B. Willis. 
Complaint of operating as common carrier without authority, cutting 
rates, and operating in competition with complainant. Dismissed. 
Docket No. 1107. 

Habit Brother's Freight Line to the Commission. Application for 
authority to operate as motor vehicle carrier from Williamston over 
No. 64 to Plymouth, Roper, Creswell, and Columbia. Granted. Docket 
No. 941. 

Hardy's Transfer to the Commission. Application for authority to 
operate as restricted common carrier. Set for hearing. Later applicant 
asks for interstate franchise, which is granted. Former application dis- 
missed. Dockets Nos. 908 and 1093. 

Independence Bus Corporation to the Commission. Application for 
authority to operate as motor vehicle carrier from Sparta to North 
Carolina-Virginia State Line, destination Wytheville, Va., over N. C. 
No. 26-U. S. No. 21. Granted. Application is made later to transfer 
Independence Bus Company to Independence Bus Corporation. Grant- 
ed. Docket No. 1294. 

Johnson Motor Lines to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier to all points in North 
Carolina with interstate freight to the State of Virginia, and vice versa. 
Dismissed for want of prosecution. Docket No. 846. 

R. S. & M. B. Koonce d/b/a Motor Transit Company vs. McLeod's 
Transfer, Inc. Complaint of operation as common carrier without 
authority, cutting rates and operating in competition with complainant. 
Dismissed. Docket No. 1105. 

R. S. & M. B. Koonce d/b/a Motor Transit Company vs. P. M. 
Sharpe d/b/a S. &. S. Trucking Company. Complaint of operation as 
common carrier without authority, cutting rates and operating in com- 
petition with complainant. Complainant asks for voluntary non-suit. 
Granted. Closed. Docket No. 1106. 

R. S. & M. B. Koonce d/b/a Motor Transit Company vs. Fred L. 
Dick and W. Lois Lambert d/b/a D. & L. Trucking Company. Complaint 
of operation as common carrier without authority, cutting rates and 
operating in competition with complainant. Complainant asks for vol- 
untary non-suit. Granted. Closed. Docket No. 1104. 

R. S. & M. B. Koonce d/b/a Motor Transit Company vs. Paul B. 
Somers d/b/a Somers Trucking Company. Complaint of operation as 
common carrier without authority, cutting rates and operating in com- 
petition with complainant. Complainant asks for voluntary non-suit. 
Granted. Closed. Docket No. 1108. 

Leaksville-Danville Bus Line to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier for transport- 
ing passengers in Leaksville-Spray. Withdrawn. Docket No. 937. 



Decisions and Adjustments of Complaints 197 

Marshall, W. L., Jr. to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from New London to 
Asheboro over No. 62 via Farmer; from Asheboro to Raleigh over No. 
90 via Siler City, Pittsboro and Cary. Withdrawn. Docket No. 538. 

Mars Hill Bus Line to the Commission. Application to change name 
to Mars Hill-Weaverville Bus Line. Granted. Docket No. 856. 

Motor Transit Company to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from Nelson to 
Graham via No. 54, and No. 55 Durham to intersection of No. 54, and 
to amend its franchise certificate as to correct an error made in trans- 
fering the certificate of Stafford Express to the Motor Transit Com- 
pany. Withdrawn. Docket No. 1259. 

Norfolk Southern Bus Corporation to the Commission. Application 
for additional service on Carolina Division. Granted. Docket No. 990. 

Oteen Bus Line to the Commission. Application for authority to 
extend certificate to operate between Oteen and Black Mountain. 
Adjusted by allowing Oteen Bus Line to run to Recreation Park. 
Docket No. 276. 

Pee Dee Oil Company, Inc., to the Commission. Application for 
franchise certificate to operate from Wadesboro to Winston-Salem over 
N. C. No. 109 via Mt. Gilead, Troy, Denton, Thomasville. From Lex- 
ington to Raleigh over No. 64 via Asheboro, Siler City, Pittsboro. 
Application to operate from Lexington to Raleigh over No. 64 with- 
drawn. Dismissed. Docket No. 653. 

Queen City Coach Company to the Commission. Application for 
franchise certificate to operate bus from N. C. No. 192 intersection 
with No. 20 at Lake Lure to N. C.-S. C. State Line via Mills Spring. 
Closed to be re-opened upon motion. Docket No. 554. 

Queen City Coach Company to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier from Charlotte 
to Newton over Nos. 271 and 73 via Denton. Dismissed. Docket No. 
871. 

Queen City Coach Company to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier for passengers 
from Marion to Blowing Rock: Marion to Junction U. S. No. 221 and 
.N. C. No. 194 via U. S. No. 221; from Junction U. S. No. 221 and N. C. 
194 to Newland via N. C. No. 194; from Newland to Linville via N. C. 
No. 181; from Linville to Blowing Rock via U. S. 221. Dismissed. 
Docket No. 1009. 

Queen City Coach Company to the Commission. Application for 
change in route between Oteen and Asheville. Granted. Docket No. 
1121. 

Railway Express Agency to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier between Salisbury 
and Norwood on N. C. No. 80, serving Granite Quarry, Rockwell, Gold 
Hill, Richfield, New London, Gold Hill, Badin and Norwood. Granted. 
Later on application is made for transfer of certificate No. 293 of 
Southeastern Express Company to Railway Express Agency Certificate 
No. 456. Granted. Docket No. 1367. 



198 N. C. Utilities Commission 

Safeway Coach Company to the Commission. Purchase of fran- 
chise certificate No. 441, Safway Transit Company, and application for 
autb'^rity to operate from Rocky Mount to Jacksonville via Pinetops, 
Farmville, Snow Hill, Kinston and Richlands, via N. C. No. 43 and 
U. S. No. 258. Granted. Docket No. 1168. 

Safway Transit Company to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from Goldsboro 
to Snow Hill over N. C. No. 102; N. C. No. 58 Snow Hill to Stantons- 
burg, Wilson, Nashville, Castalia to Junction 58 and 56; from Junction 
to Louisburg, N. C. No. 56; Louisburg to Warrenton, N. C. No. 69; U. S. 
No. 258 from Warrenton to Norlina. Withdrawn. Docket No. 1088. 

Seaboard Air Line Railway Company, Legh R. Powell, Jr., and 
Henry W. Anderson, Receivers, to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier between: 
Hamlet-Monroe. Charlotte-Monroe. Hamlet-Wilmington, as substitute 
for train operation. Application with reference to Monroe-Charlotte 
withdrawn. Dismissed. Docket No. 875. 

Seaboard Air Line Railway, Legh R. Powell, Jr., and Henry W. 
Anderson, Receivers, to the Commission. Application for franchise cer- 
tificate to operate as motor vehicle carrier between: Hamlet-Raleigh. 
N. C.-Va. State Line to Henderson, via U. S. No. 1. Henderson-Raleigh. 
Hamlet-Columbia, S. C. Monroe-Rutherfordton. Dismissed. Docket No. 
975. 

Seashore Transportation Company vs. Safway Transit Company 
and Southerland Bros. Complaint as to schedules between Kinston and 
Goldsboro. Adjusted in conference, after hearing. Docket No. 1125. 

Smith's Transfer Company, Inc., to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier over No. 268 
(temporary); from North Wilkesboro to Roaring River; Roaring River 
to Ronda; Ronda to Elkin, and return over same route. Road not com- 
pleted. Dismissed. Docket No. 957. 

Stallings Transfer Service to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from Rocky Mount 
via No. 64, Tarboro to Williamston over N. C. No. 17 to Windsor, Eden- 
ton, Hertford to Elizabeth City; thence over No. 17 to intersection of 
N. C. No. 30; thence over No. 30 to Gatesville, Roduco, Winton, Ahos- 
kie, Aulander; thence over No. 305 to Rich Square; thence with N. C. 
No. 256 to Scotland Neck to Lawrence; thence over No. 95 to Leggett 
and Rocky Mount. Dismissed. Docket No. 1163. 

Stallings Transfer Service vs. Lancanster Motor Express Service. 
Complaint of operation in violation of Section 9 of Motor Carrier Act. 
Settled by conference. Dismissed. Docket No. 1370. 

Thurston Motor Lines to the Commission. Application for authority 
to purchase J. E. Davis T/A Davis Transportation Truck Line and 
amend certificate therewith. Approved. Docket No. 1441. 

Turner's Trucking Line to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier of freight from 
Asheville to Hendersonville via No. 25; thence Hendersonville to Bre- 



Decisions and Adjustments of Complaints 199 

vard via No. 64; thence Brevard via No. 280 and No. 191 to Asheville. 
Granted. Application filed later to change name to W. E. Cole. Granted. 
Docket No. 874. 

Virginia Dare Transportation Company to the Commission. Appli- 
cation for franchise certificate to operate as motor vehicle carrier from 
Elizabeth City to Williamston over No. 342; Williamston to New Bern 
over No. 30; New Bern to Beaufort over No. 10. Application with- 
drawn. Docket No. 767. 

Ward Transfer Company to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier over following 
routes; Wilmington to Winston-Salem via Dunn, Smithfield and 
Greensboro, returning over same route. Wilmington to Tarboro, via 
Jacksonville, Farmville, Wilson and Rocky Mount, and return via 
No. 258 to Jacksonville, and No. 17 to Wilmington. Wilmington to 
Aberdeen, via Laurinburg and return over same route. Wilmington to 
Washington, N. C. Petitioner asks for non-suit, which is granted. Then 
application is filed for interstate certificate, which is granted. Dockets 
Nos. 908 and 1031. 

Woodie, E. O., Bus Line to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier for transportation 
of passengers from West Jefferson over No. 16 to Glendale Springs, 
Redding River, Miller's Creek, North Wilkesboro, Moravian Falls, 
Taylorsville, Miller's Mill, Conover, Newton; thence on N. C. No. 73 to 
Denver; then N. C. No. 271 to Lowesville and Charlotte. Dismissed. 
Docket No. 591. 

Woodie, E. O. and E. O. Woodie Transportation Company to the 
Commission. Application for authority for E. O. Woodie to sell or 
transfer all rights, interest and privileges, and title to E. O. Woodie 
Transportation Company. Granted. Docket No. 1300. 

Yount, L. R. d/b/a Yount Transfer to the Commission. Application 
for franchise certificate to operate as motor vehicle carrier as follows: 
one round trip daily from Hickory over No. 70 to Conover, Newton, 
Statesville, Salisbury, Lexington, Thomasville, High Point and return 
over same route. One round trip daily from Hickory to Granite Falls, 
Hudson, Lenoir over No. 17, and from Lenoir to Morganton over No. 
18; Morganton to Valdese, to Hickory over No. 70. Withdrawn. Docket 
No. 1172. 

PULLMAN COMPANY 
INCREASES IN PULLMAN FARES AND CHARGES, 1938. 

Order 
Appearances : 

James H. Pou, Jr., and J. L. Emanuel, Attorneys at Law, 
Raleigh, N. C, for Applicant. 

At the time the Pullman Company petitioned the Interstate Com- 
merce Commission for approval of an increase of 10 per cent in all 
sleeping and parlor car rates, fares, and charges, a similar petition was 
filed with this Commission with the request that the increases «s 
authorized by the Interstate Commerce Commission be approved on 
intrastate travel. 

The Interstate Commerce Commission authorized petitioner to 
increase its rates and charges not more than 5 per cent with the 



200 N. C. Utilities Commission 

suggestion that no increases be made in upper berth charges in order 
to stimulate a larger use of upper berths. An amended petition, dated 
July 1, was filed with this Commission on July 5, seeking only a 5 per 
cent increase, effective August 1, 1938 and same was heard by the 
Commissioner on July 25, 1938. No one appeared in opposition thereto. 
Several statements were introduced which show the number of 
intrastate passengers traveling in sleepers and parlor cars between 
points in North Carolina for the years of 1935 to 1938, inclusive; reve- 
nues derived from those operations, with amounts accruing to railroad 
companies; operating expenses and net results. Sub-joined is a state- 
ment showing the number of passengers and revenue accruing there- 
from on the sleeper lines between Asheville and Raleigh and parlor 
lines between Wilmington and Rocky Mount for periods of January 1 
to June 30, inclusive, of the years given. 

Asheville & Raleigh (Sleeper) 1935 1936 1937 1938 

Paying Berth Passengers.... 2,257 2,330 2,633 2,195 

Paying Seat Passengers 386 381 326 331 

Berth Revenue $5,204.33 $5,225.33 $6,139.14 $4,922.04 

Seat Revenue 286.13 291.59 248.66 244.80 

Wilmington & Rocky Mount 
(Parlor) 

Paying Seat Passengers 119 152 104 137 

Seat Revenue $71.00 $86.13 $56.16 $82.96 

For the year ended December 31, 1937, the gross revenue of the 
line between Asheville and Raleigh was $12,169.73. The proportion 
thereof accruing to the railroad company was $2,007.53, leaving peti- 
tioner's proportion as $10,162.20. Its operating expenses amounted to 
$22,591.61, resulting in a deficit of $12,429.41. 

The revenue accruing from the operation of the parlor car between 
Wilmington and Rocky Mount was only $126.76 for the same period, 
$25.02 of which accrued to the railroad company. Petitioner's operating 
expenses were $9,707.92, resulting in a deficit of $9,675.10. The deficit 
accruing from the operation of these two lines was $22,104.59. The 
following statement shows the number of cars operated and gross and 
net earnings thereof required to perform service within the State of 
North Carolina during the year of 1937: 

Standard 

Sleepers Parlors Composite Total 

Cars Operated 68,436 1,200 1,900 71,536 

Gross Receipts of the 
Company within North 
Carolina from Intra- 
state Business $ 21,611.21 

North Carolina's 

Proportion of Gross 

Receipts of the Company 

from Interstate Business 885,743.96 

$907,355.17 
Less Railroad's Propor- 
* tion of Gross Receipts 153,093.54 

Pullman Company's Propor- 
tion of Gross Receipts $754,261.63 

Operating Expenses 672,109.66 

Net Gain $ 82,151.97 



Decisions and Adjustments of Complaints 201 

The inclusion of figures for North Carolina's proportion of gross 
receipts from interstate business results in a profit of $82,151.97. 

The revenue of petitioner from intrastate travel declined from 
$74,586.60 in 1929 to $21,661.21 in 1937, the latter representing only 
28.97 per cent of the former. 

The proposed increases will not exceed 15 cents for lower berths 
between any two points within North Carolina. The greatest increase, 
viz. : 45 cents, will be for a drawing room of two passengers. 

Petitioner furnished this Commission with the record and all ex- 
hibits in the case before the Interstate Commerce Commission (Ex 
Parte 125), which, with copy of that Commission's decision, dated 
June 20, have been made a part of the record in these proceedings. 
It was shown in the interstate case that revenue from the sale of 
berths and seats, and the charter of cars within the entire United 
States declined from approximately $90,000,000 in 1929 to a low of 
$38,000,000 in 1933, and then rose steadily to about $54,000,000 in 
1936, and $58,500.00 in 1937. Contract payments to the railroads de- 
clined from 7.8 million dollars in 1929 to 1.3 million dollars in 1933, 
and then increased to 4.6 million in 1936, and 3.8 million in 1937. 
Car mileage rentals, however, increased from 1.2 million dollars in 
1929 to 7.4 million in 1937, due chiefly to the greater use of air- 
conditioned cars. 

Expenses of operating sleeping and parlor cars declined from 69.5 
million dollars in 1929 to 38 million in 1933, and then rose to 50 
million in 1936, and 54.5 million in 1937. 

Taxes declined from 3.8 million dollars in 1929 to 1.1 million in 
1933, and then increased to 3.2 million in 1936, and 3.7 in 1937. 

It does not appear that conditions in North Carolina have been 
unlike those throughout the United States as a whole and as 43 states 
have thus far approved the increases and, in order that rates, fares, 
and charges may continue to be on a uniform basis, it appearing from 
the entire record in these proceedings that petitioner is in need of 
additional revenues, the petition will be granted. 

It is therefore ordered. That Petition of the Pullman Company 
for authority to increase its rates, fares, and charges on all classes of 
accommodations, except upper berths, by an amount of 5 per cent, be, 
and the same is hereby, granted. 

It is further ordered. That petitioner be authorized to add a suf- 
ficient amount where necessary to make the rate, fare, or charge end 
in a multiple of 5 cents. 

It is further ordered. That the increases herein approved may be 
published to become effective on, or after August 1, 1938. 

This 26th day of July, 1938. 

Stanley Winborne, 

Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1155. 



202 N. C. Utilities Commission 

RAILROADS 

Rates, Charges, Rules and Regulations 

(Excludes applications and petitions involving reductions) 

Ash, Volcanic (pumicite), C.L. : Application of E. H. Dulaney to 
cancel Item 80, Note B of Exceptions No. 17 to Southern Classification, 
ICC No. 72. Approved. Docket 1386. 

Bagging and Ties, L.C.L.: Application of Southern Freight Asso- 
ciation to increase rating thereon as described in Item 115 and 165, 
Note B of Exceptions to Southern Classification, E. H. Dulaney's ICC 
No. 168. Withdrawn. Docket No. 503. 

Bases, Rate: Application of Southern Freight Tariff Bureau to 
change Rate Basis in F.T. No. 715 (North Carolina) between Marion 
and Wallace from 235 to 325, account error. Approved. Docket 485. 

Billits (except walnut, cherry or cedar), C.L.: Application of 
Southern Railway to cancel rate of IIV2 cents per 100 pounds from 
Greensboro to Wilmington published on Page 20 of Southern Rail- 
way's Miscellaneous Forest Products Tariff No. 5, ICC A-10698, ac- 
count no movement. Approved. Docket 116. 

Blankets, cotton and wool, mixed: Complaint of Chatham Manu- 
facturing Company. Adjusted. Docket 898. 

Board, woodpulp: Application Southern Railway Company to re- 
vise rate from Canton to Winston-Salem. Approved. Docket 625. 

Boilers, range, without interior water heaters, iron and steel, 
L.C.L., and tanks, expansion, iron or steel, L.C.L.: Application of 
Agent E. H. Dulaney to Item 275, Note B of Exceptions No. 17 to 
Southern Classification, ICC 72. Approved. Docket 1386. 

Books, school: Application of Railway Express Agency to revise 
express rates between Raleigh and North Carolina points. Approved. 
Docket 1279. 

Box and Crate Material, wooden, lined with paper, paperboard, 
or pulpboard, etc.: Application of Southern Freight Tariff Bureau to 
remove from lumber description. Approved. Docket 1392. 

Brick: Application of Aberdeen and Rockfish Railroad Company 
to cancel special rate on brick published in Freight Tariff No. 69 from 
Fayetteville to Raeford, account no movement. Approved. Docket 116. 

Brick, C. L. : Application of Norfolk Southern Railroad Company 
to publish rate of 41/2 cents per 100 pounds from Brickhaven to Greens- 
boro with relief from C. S. 1072, Long and Short Haul Law. Approved. 
Docket 451. 

Brick: Application of Southern Freight Tariff Bureau to correct 
printer's error in Tariff 321-A (brick) I.C.C. 301, brought about by 
misplacements of brackets in Index 220634 and 220636, page 578. Rates 
were correctly published on page 43 of Supplement 145 to previous 
tariff. Granted. Docket 516. 

Coal and Coke: Application of L. & N. Railroad Co. to cancel rates 
thereon published on page 30 of Supplement No. 56 to L. & N. R. R. 



Decisions and Adjustments of Complaints 203 

Atlanta Division Local Tariff No. 2, account no movement. Approved. 
Docket 116. 

Classification: Application of Agent E. H. Dulaney to apply pro- 
visions of Southern Classification No. 54 (Consolidated Freight Classi- 
fication No. 11) ICC No. 66, and Supplements thereto, approved, except 
matters covered by specific orders, printed elsewhere herein, and 
except matters suspended. Docket 898. 

Classification: Increases in ratings, charges, rules and regulations. 
Southern Classification No. 55 (Consolidated Freight Classification No. 
12), Agent E. H. Dulaney's ICC No. 71 and Supplements 1 through 7 
thereto. Approved. Docket 1231. 

Clothing, made wholly of cotton, viz: overalls, jumpers, shirts, and 
pants, A.Q.: Application for A. & Y. Railway Company to cancel rate 
of 58^/2 cents per 100 pounds from Greensboro to Washington and 
apply in lieu thereof 70 per cent of first class rates. Approved. Docket 
116. 

Collection and Delivery: Petition of Whiteville Merchants Associa- 
tion for collection and delivery service by American Railway Express. 
Effective April 1, 1938. Docket 644. 

Commodities, viz: bakery goods, iron and steel, meats, oils, paints, 
pen points, and sausage casings: Application of Southeastern Express 
Company to revise ratings to correspond with rail ratings. Approved. 
Docket 1279. 

Commodities, miscellaneous, viz: barytes, C.L.; carriers, wooden, 
C.I.; clothing, A.Q; dry goods, A.Q.; furniture, C.L.; furniture material, 
C.L. and L.C.L.; machinery and machines, C.L.; mica, C.L.; pipe, 
sewer, C.L.; and powder, talcum, A.Q.: Applications of Southern Rail- 
way Company to cancel rates on the obsolete theory. Approved. 
Docket 116. 

Commodities, specific, published in Southern Railway ICC No. 
A-10247, viz: blankets, A.Q.; clay, C.L.; cotton hosiery; cotton and 
wool waste, A.Q.; dowels, wooden, C.L.; feldspar, C.L.; mica refuse, 
C.L.; mica, C.L.; ore, graphite, gold, iron, C.L.; shale, C.L.; stone, vis: 
marble, granite or stone blocks or slabs, C.L.; talc, crude, C.L.; wood, 
C.L.; wooden porch columns, C.L.; wool, A.Q.; cotton, died, A.Q.; 
soapstone or talc, C.L.; yarn, cotton, A.Q.; and metal, scrap, C.L.: 
Application of Southern Railway Company to cancel rates thereon on 
obsolete theory. Approved. Docket 116-A. 

Commodities, miscellaneous (ratings on) viz: dough, prepared, 
L.C.L. and C.L.; vehicle material, wooden, L.C.L.; handles, wood, in 
the white (without metal attachments), viz: broom or mop, L.C.L. ; 
dressing or blocking, shoe or leather, other than belt, L.C.L.; household 
goods in lift vans, prepaid, L.C.L. and C.L.; rice (except rough rice), 
L.C.L.; bagging, new or old; burlap, gunny or jute, paper lined or 
other than paper lined, in machine pressed bales, L.C.L.; covers, bur- 
lap, barrels, L.C.L.; buffing or polishing compounds, NOIBN, in South- 
ern Classification, including bolt, floor, furniture, or vehicle polish or 
wax, L.C.L.; bags, new or old; burlap, gunny or jute, lined with cotton 
cloth or paper or not lined, in machine pressed bales, L.C.L.; petroleum 



204 N. C. Utilities Commission 

or petroleum products, including compounded oils or greases having 
a petroleum base, L.C.L., as published in Note B of Exceptions No. 17 
to Southern Classification, Agent E. H. Dulaney's ICC No. 72; rates 
on charcoal, wood, NOIBN, L.C.L., from Fayetteville to North Carolina 
points. Items 8075 to 8450, inclusive, of Agent Roy Pope's Tariff 522-B, 
ICC 261: Application No. 154 and Amendments 1 and 2 thereto of 
Southern Freight Association to permit expiration of truck competitive 
rates thereon with June 30, 1938. Approved. Docket 116. 

Commodities, specific, miscellaneous, viz: cattle, cement, coal, dry 
goods, ice, scrap metal, as published in Seaboard Air Line ICC No. 
A-6850, RR. No. 8740, Carolina Tariff 3: Application of Seaboard Air 
Line Railway to cancel obsolete rates thereon. Approved. Docket 116. 

Commodities, miscellaneous, viz: cigar box material, C.L.; acid, 
sulphuric (oil or vitriol), in tank cars, C.L.; gravel, unwashed, C.L.; 
and tobacco stems, unground, C.L. : Application of Atlantic Coast Line 
Railroad Co. to cancel obsolete rates published thereon in Atlantic 
Coast Line Railroad Carolina Tariff No. 4, ICC No. B-2643. Approved. 
Docket 116. 

Commodities, specific, viz: carbon electrodes; nitrate cake; pins, 
aluminum pot, wooden; pitch; tar, coal or petroleum, C.L. : Application 
of Southern Railway Co. to cancel obsolete rates published in General 
Southern Tariff No. 1, ICC A-10668. Approved. Docket 116. 

Copra, C.L.: Application of Aberdeen and Rockfish Railroad Com- 
pany to cancel rate of $1.00 per net ton from Fayetteville to Raeford, 
account no movement. Approved. Docket 116. 

Cotton piece goods (unfinished) and related articles: Application 
of Southern Freight Association to cancel transit rates and apply in 
lieu thereof new schedules. Approved. Docket 1253. 

Cottonseed and cottonseed hulls, C.L.: Application of Atlantic and 
Carolina Railroad Co., through the American Short Line Railroad 
Association, Atlanta, Georgia, to cancel rates on the obsolete theory. 
Approved. Docket 116. 

Cottonseed, C.L. : Application of Norfolk Southern Railroad Com- 
pany to revise rates between the points on its line. Approved. Docket 
148. 

Cottonseed, C. L. : Application of Norfolk Southern Railroad Com- 
pany to cancel truck competitive rate of $1.05 per ton from Durham 
and Southern Railway stations to Raleigh, account no movement. 
Approved. Docket 116. 

Cottonseed products: Application of Southern Freight Tariff Bureau 
to establish uniform list of outbound shipments which may be made 
from mill points and used in determining the application of net transit 
rates. Approved. Docket 1002. 

Demurrage and storage rules, regulations and charges : Applications 
of Central Freight Association Tariff Bureau for revision. Approved. 
Docket 149. 

Distances: Application of Atlantic Coast Line Railroad Company 
to revise distances between Goldsboro and Mingo from 63.2 to 64.2 



Decisions and Adjustments of Complaints 205 

miles, and between Goldsboro and Dunn from 67.7 to 68.5 miles, 
account of error in publication. Approved. Docket 485. 

Distances : Application of L&S Railroad Company to revise dis- 
tances between certain points on its line to correct discrepancies. 
Approved. Docket 485. 

Distances: Application of Southern Freight Tariff Bureau to pub- 
lish in F.T. No. 629- A (North Carolina Intrastate) ICC 1740 (C. R. 
Young Series) 193.9 miles in lieu of 139.9 miles, account of typograph- 
ical error. Approved. Docket 485. 

Distances: Application of Southern Freight Tariff Bureau to revise 
mileages between Acme and certain North Carolina points, and be- 
tween Dunn and Goldsboro, published in F.T. No. 629-A (N. C. Intra- 
state) I.C.C. 1740, account clerical or typographical errors. Approved. 
Docket 485. 

Distances: Application of Southern Freight Tariff Bureau to revise 
mileage between Selma and Wilmington published in Tariff 629-A 
(N. C. Intrastate) I.C.C. 1740 (C. R. Young Series) to reflect abandon- 
ment of the Midland Branch of the Atlantic Coast Line Railroad, 
between Goldsboro and Smithfield. Approved. Docket 485. 

Diversion and Reconsignment Rules and Charges: Application of 
Southern Freight Tariff Bureau to revise. Approved. Docket 105. 

Exceptions to Official Express Classification No. 31, I.C.C. 315: 
Application of Southeastern Express Company to cancel. Approved. 
Docket 1279. 

Express Rates, Ratings, Charges, Rules, and Regulations: Applica- 
tions of Railway Express Agency for approval of N.C.U.C. No. 67, 
Supplements thereto; N.C.U.C. No. 106, Supplements thereto; N.C.U.C. 
No. 127, Supplements thereto; N.C.U.C. No. 145, Supplements thereto; 
N.C.U.C. No. 148, Supplements thereto; N.C.U.C. No. 155, Supplements 
thereto; N.C.U.C. No. 144, Supplements thereto. Granted. Docket 720. 

Express Rates, Truck Competitive: Application of Southeastern 
Express Company and Railway Express Agency to increase to be no 
higher than rail rates advanced. Approved. Docket 1279. 

Fares, Pullman: Application of Southeastern Passenger Association 
to revise round-trip fares for tickets bearing fifteen-day limit from 
2 cents per mile to 2^/4 cents per mile. Approved. Docket 1078. 

Fares : Application of Seaboard Air Line Railway to increase parlor 
car fares not to exceed 5 per cent to correspond with similar increase 
authorized in Pullman fares, covered by order printed elsewhere 
herein. Approved. Docket 1155. 

Fares: Application of Seaboard Air Line Railway to cancel special 
round-trip fares from Acme and Northwest to Wilmington and apply 
fares based on 2 cents per mile for one-way, plus 25 cents for round 
trip. Approved. Docket 761. 

Fares: Application of Southeastern Passenger Association to cancel 
fifteen-day limit round- trip fares on basis of 2V4 cents per mile in 
each direction and apply six months' limit on basis of 21/2 cents per 
mile. Approved. Docket 761. 



206 N. C. Utilities Commission 

Fertilizer and Fertilizer Materials: Application of Atlantic and 
North Carolina Railroad Company to cancel switching charge thereon 
at James City. Approved. Docket 1073. 

Fertilizer and Fertilizer Materials, C.L. and L.C.L.: Application of 
Norfolk Southern Railroad Company to cancel obsolete commodity 
rates and apply combination rates from Edenton and Hertford to 
Wanchese line landings. Approved. Docket 116. 

Fertilizer and Fertilizer Materials, C.L.: Application of Southern 
Freight Tariff Bureau to publish reduced rates from Acme, Navassa, 
and Wilmington to Norfolk Southern Railroad stations, including Lil- 
lington with relief from C.S. 1072, Long and Short Haul Law, via 
routes other than Atlantic Coast Line Fayetteville N.S. Approved. 
Docket 512. 

Fertilizer, routing in connection with: Application of Southern 
Freight Tariff Bureau to revise specific route in connection with rates 
from Acme, Navassa, and Wilmington to Norfolk Southern Railroad 
stations, including Lillington published in Supplement 71-A to Freight 
Tariff 392-A (fertilizer). Approved. Docket 512. 

Fish Scrap, dried (not ground or pulverized) : Application of 
Southern Freight Tariff Bureau to eliminate from list of transit ingredi- 
ents in grain transit tariffs and add as a separate list a similar item, 
including shrimp hulls, ground or not ground. Approved. Docket 624. 

Grain, Transit: Application of Southern Freight Tariff Bureau to 
amend grain transit tariffs by eliminating from List 1 of transit in- 
gredients in connection with mixing in transit of feed all commodities 
on which the through rates are on the same basis as cottonseed meal, 
and add those commodities to list 2. Approved. Docket 624. 

Gravel, unwashed, C.L.: Application of Atlantic Coast Line Rail- 
road Company to cancel barge-truck competitive rate of 80 cents per 
net ton from Weldon to Gates, account completion of movement. 
Approved. Docket 116. 

Gravel, C.L.: Application of Norfolk Southern Railroad Company 
to publish truck competitive rate of 60 cents net ton from Bunlevel 
Pit to Dunn with relief from C.S. 1072. Approved. Docket 535. 

Gravel, C.L.: Application of Norfolk Southern Railroad Company 
to cancel special rate of $1.15 per ton from Bunlevel Pit to King, 
Dalton, and Pinnacle, account completion of project. Approved. 
Docket 116. 

Gravel, C.L.: Application of Norfolk Southern Railroad Company 
to publish rates of 80 cents and 90 cents per net ton from Bunlevel Pit 
to Hemp, and Seagrove, respectively, with relief from C.S. 1072, Long 
and Short Haul Law. Approved. Docket 106. 

Gravel, unwashed clay, C.L.: Application of Norfolk Southern 
Railroad Company to publish rate of $1.00 per ton from Italy Hill to 
Belhaven and Columbia with relief from C.S. 1072, Long and Short 
Haul Law. Approved. Docket 427. 

Gravel, C.L. : Application of Seaboard Air Line Railway to cancel 
truck competitive rate of 35 cents per ton from Garysburg to Roanoke 
Bapids, account no movement. Approved. Docket 116. 



Decisions and Adjustments of Complaints 207 

Gravel, C. L. : Application of Seaboard Air Line Railway to cancel 
truck competitive rate of 95 cents per ton from Gravelton to Hemp. 
Approved as to Seagrove but denied as to Hemp. Docket 116. 

Gravel, C.L.: Application of Seaboard Air Line Railway to cancel 
truck competitive rates of 40 cents and 50 cents per ton from Gravelton 
to Marshville and Monroe, account completion of movement. Approved, 
however, rates restored effective October 21, 1937, cover subsequent 
movements. Docket 116. 

Gravel, C.L.: Application of Seaboard Air Line Railway to publish 
rate of 90 cents per net ton from Gravelton to Raleigh, with relief 
from C.S. 1072, Long and Short Haul Law. Approved. Docket 106. 

Gravel, C.L,: Application of Seaboard Air Line Railway to cancel 
rate of 80 cents per ton from Gravelton to Sanford, account completion 
of project. Approved. Docket 116. 

Gravel, C.L.: Application of Southern Freight Tariff Bureau for 
relief from C.S. 1072, via circuitous route in connection with rates of 
70 cents and 60 cents per ton from Goldsboro to Durham and Raleigh. 
Granted. Docket 646. 

Grouping: Application of Southern Freight Tariff Bureau to change 
grouping of stations on Atlantic and North Carolina Railroad to correct 
a maladjustment. Approved. Docket 485. 

Iron and Steel articles, C.L.: Application of E. H. Dulaney to 
cancel 8th class rating published in Item 9 10- A, page 9, Supplement 
No. 16 to Southern Classification, Exceptions No. 15 and apply in 
future rates in Agent Roy Pope's Southern Iron Tariff 240, I.C.C. 1948 
(C. R. Young Series). Approved. Docket 236. 

Iron and Steel articles, viz; piling, iron or steel and steel, reinforc- 
ing, C.L. : Application of Virginia and Carolina Southern Railroad 
Company through the American Short Line Railroad Association to 
cancel V. & C. S. Railroad Proportional Freight Tariff No. 1, I.C.C. 
No. 69 publishing rate of 21/4 cents per 100 pounds from St. Paul to 
points on the V. & C. S., account no movement. Approved. Docket 116. 

Loam Soil, C.L. : Application of Norfolk Southern Railroad Com- 
pany to publish special rate of $1.70 per net ton from Terra Ceia to 
Wilmington, and $1.90 from Terra Ceia to Greensboro and Winston- 
Salem with relief from C.S. 1072, Long and Short Haul Law. Approved. 
Docket 755. 

Logs, C.L.: Application of Atlantic and North Carolina Railroad 
Co. to cancel rate of $8.55 for car of 60,000 pounds from Havelock and 
Newport to Bridgeton, account no movement. Approved. Docket 116. 

Logs, C.L.: Application of Atlantic and North Carolina Railroad 
Co. to revise rates to Goldsboro. Approved. Docket 1020. 

Logs: Application of Southern Freight Association to revise esti- 
mated weights. Approved. Docket 1066, 

Logs, C.L. : Application of Southern Railway Company to cancel 
on the obsolete theory rate of 11^/2 cents per 100 pounds published in 
Southern Railway's Log Tariff No. 8, I.C.C. No, A-10624 from Greens- 
boro to Wilmington. Approved. Docket 116. 



208 N. C. Utilities Commission 

Lumber, C.L.: Application of Norfolk Southern Railroad Company 
to publish rate of $1.84 per 1000 feet, minimum 12,000 feet, from 
Bridgeton to Belhaven with relief from C.S. 1072, Long and Short Haul 
Law. Approved. Docket 168. 

Lumber, C.L. : Application of Norfolk Southern Railroad Company 
to cancel water competitive rate of 3 1/2 cents per 100 pounds, carload 
minimum 60,000 pounds, from Hudnell Siding to Belhaven, account 
removal of Siding at Hudnell. Approved. Docket 116. 

Lumber, transit: Application of Virginia and Carolina Southern 
Railroad Company through the American Short Line Association to 
cancel on the obsolete theory V. & N. C. Lumber Transit Tariff No. 2, 
I.C.C. No. 46. Approved. Docket 116. 

Magazines, Newspapers, other than daily, and periodicals: Appli- 
cation of Southeastern Express Company to cancel rates thereon in its 
Express Tariff, N.C.U.C. No. 33, and apply ratings in Official Express 
Classification. Approved. Docket 1279. 

Oils, vegetable, fish and sea animal: Application of Southern 
Freight Tariff Bureau to provide uniform refining in transit rules 
thereon. Approved. Docket 1034. 

Oil, vegetable : Application of Southern Railway Company to cancel 
rates from Cleveland, Concord, Davidson and Mooresville to Charlotte, 
published in Vegetable Oil Tariff No. 3, I.C.C. A-10277. Withdrawn. 
Docket 116. 

Peat, ground, or not ground, and peat moss in packages or in bulk: 
Application of Southern Freight Tariff Bureau to provide for non- 
application of stop-off privileges (stopping in transit). Approved. 
Docket 137. 

Pecans, L. C. L., as described in Items 1115 and 1125, Note B, 
Exceptions No. 17 to Southern Classification, Agent E. H. Dulaney, ICC 
No. 72: Application No. 154 of Southern Freight Association for 
authority to increase truck competitive rating thereon from class 57 
to class 70. Approved. Docket 116. 

Petroleum products, in tank cars: Application of Southern Freight 
Association to amend minimum weight in connection with rates to 
meet water competition, or a combination of water and truck compe- 
tition, to be subject to Rule 35 of Southern Classification, but not less 
than 39,000 pounds. Approved. Docket 446. 

Pickles, NOIBN, in brine, in tank cars: Application of Atlantic 
Coast Line Railroad Company to establish rate of 121/2 cents per 100 
pounds from Burgaw to New Bern with relief from C. S. 1072, Long 
and Short Haul Law. Approved. Docket 1418. 

Pickles, C. L. : Application of Norfolk Southern Railroad Company 
to establish rate of 10 cents per 100 pounds from Plymouth to New 
Bern with relief from C. S. 1072, Long and Short Haul Law. Approved. 
Docket 1418. 

Pick-up and Delivery: Application of Southern Freight Association 
to amend tariffs of individual lines to include blasting caps in the list 
of articles on which pick-up and delivery service will not apply. Ap- 
proved. Docket 644. 



Decisions and Adjustments of Complaints 209 

Pick-up and delivery service: Application of Southern Freight Asso- 
ciation to provide the non-application of pick-up and delivery service 
on grain, grain products and related articles. Approved. Docket 644. 

Pick-up and delivery: Application of Southern Railway to discon- 
tinue pick-up and delivery service at Clyde, Dillsboro, Pisgah Forest, 
Whittier, Saluda, Cary, Dallas, Hudson, New London, Richfield, Fock- 
ford, Mt. Ulla, Blanch, Brown Summit, Bullock, Garner, Hiddenite, 
Milton, Newell, Pine Level, Pineville, Stem, Stovall. Approved. Docket 
644. 

Potatoes, charges for furnishing dry refrigerator cars for: Appli- 
cation of Southern Freight Tariff Bureau to establish from North Caro- 
lina Ports. Approved. Docket 1377. 

Poultry, live, C. L.: Application of Southern Railway Company to 
cancel obsolete rates from Southern Railway stations to Greensboro 
and Salisbury as published in the Southern Railway's Life Stock Tariff 
No. 7, ICC No. A-10417. Approved. Docket 116. 

Pulpwood: Application of Atlantic Coast Line Railroad to establish 
rates to Plymouth, N. C. Approved. Docket 973. 

Pulpwood: Application of Norfolk Southern Railroad Company for 
itself and on behalf of carriers parties to Norfolk Southern Railroad, 
ICC No. A-410, Rate Issue 150, to cancel rates from stations on the 
Atlantic and. North Carolina Railroad and the Norfolk Southern Rail- 
road to Canton, account no movement. Approved. Docket 116. 

Pulpwood: Application of Norfolk Southern Railroad Company to 
revise rates to Plymouth, N. C. Granted. Docket 973. 

Rosin, sizing, C. L.: Application of Southern Railway to cancel rate 
of 231/2 cents per 100 pounds, published on Page 24, Supplement to No. 
48 to Southern Railway Naval Stores Tariff No. 10, ICC No. A-9746, 
from Canton to Roanoke Rapids, account no movement. Approved. 
Docket 116. 

Rules for Constructing Combination Rates: Application Southern 
Freight Association for authority to amend all tariffs publishing rates 
on plaster and related articles; stone, artificial and natural; building 
and monumental; and unwashed clay gravel, by eliminating therefrom 
references to Agent B. T. Jones Freight Tariff No. 228, ICC No. U. S. 1 
(Rules for Constructing Combination Rates). 

Sand, C. L.: Application of Atlantic and North Carolina Railroad 
Company to publish water competitive rate of 75 cents per net ton from 
Goldsboro to Edenton, Waddill, and Mackeys, with relief from C. S. 
1072. Approved. Docket 646. 

Sand, C. L.: Application of Atlantic Coast Line Railroad to cancel 
truck competitive rate of 90 cents per ton from Goldsboro to Littleton, 
account completion of project. Approved. Docket 116. 

Sand, C. L.: Application of Atlantic Coast Line Railroad Company 
to cancel rate of 75 cents from Goldsboro to Plymouth for barge move- 
ment beyond. Approved. Docket 116. 

Sand, C. L.: Application of Atlantic Coast Line Railroad Company 
to publish proportional rate of 75 cents per ton from Goldsboro to 



210 N. C. Utilities Commission 

Plymouth, when for water movement beyond, with relief from C. S. 
1072, Long and Short Haul Law. Approved. Docket 106. 

Sand, C. L.; Application of Atlantic Coast Line Railroad Company 
to cancel truck competitive rate of 70 cents per ton from Goldsboro to 
Scotland Neck and Smith Grade, account completion of project. Ap- 
proved. Docket 116. 

Sand, C. L.: Application of Atlantic Coast Line Railroad Company 
to publish truck competitive rate of 90 cents per net ton from Golds- 
boro to Woodland and 75 cents per net ton from Goldsboro to Roanoke 
Rapids, with relief from C. S. 1072. Approved. Docket 646. 

Sand, C. L.: Application of Clinchfield Railroad Company to cancel 
special rates from Thermal City, Logan, Bostic, and Forest City, to 
stations between Spruce Pine and Tennessee State Line, account no 
movement. Approved. Docket 116. 

Sand, C. L.: Application of Norfolk Southern Railroad Company to 
cancel rate of 60 cents per net ton from Askin to Beaufort and More- 
head City, account no movement. Approved. Docket 116. 

Sand, C. L.: Application of Norfolk Southern Railroad Company to 
publish rate of $1.00 per ton from Bunlevel to Columbia, with relief 
from C. S. 1072, Long and Short Haul Law. Approved. Docket 106. 

Sand, C. L.: Application of Norfolk Southern Railroad Company 
to publish rate of $1.15 per net ton from Bunlevel to Dalton, King, and 
Pinnacle, with relief from C. S. 1072. Approved. Docket 106. 

Sand, C. L.: Application of Norfolk Southern Railroad Company to 
publish truck competitive rate of 60 cents per net ton from Bunlevel 
Pit to Dunn with relief from C. S. 1072. Approved. Docket 535. 

Sand, C. L.: Application of Norfolk Southern Railroad Company to 
cancel truck competitive rate of 541/2 cents per ton from Bunlevel Pit 
to Fayetteville, account of no movement. Approved. Docket 116. 

Sand, C.L.: Application of Norfolk Southern Railroad to cancel 
special rate of $1.15 per net ton from Talbird and Bunlevel Pit to 
King, Dalton, and Pinnacle, account completion of project. Approved, 
Docket 116. 

Sand, C.L.: Application of Norfolk Southern Railroad Company to 
publish rate of 75 cents per ton from Goldsboro to Edenton, with relief 
from C. S. 1072, Long and Short Haul Law. Approved. Docket 106. 

Sand, C. L.: Application of Seaboard Air Line Railway to cancel 
special rates from Garysburg to Camp Polk and Raleigh, account no 
movement. Approved. Docket 116. 

Sand, C. L.: Application of Seaboard Air Line Railway to cancel 
truck competitive rate of 35 cents per ton from Garysbury to Roanoke 
Rapids, account no movement. Approved. Docket 116. 

Sand, C. L.: Application of Seaboard Air Line Railway to cancel 
truck competitive rates of 40 and 50 cents per ton from Gravelton to 
Marshville and Monroe, account completion of movement. Approved, 
however, rates restored effective October 21, 1937, cover subsequent 
movements. Docket 116. 

Sand, C. L.: Application of Seaboard Air Line Railway to cancel 



Decisions and Adjustments of Complaints 211 

truck competitive rate of 95 cents per ton from Hoffman to Greensboro, 
account completion of project. Approved. Docket 116. 

Sand, C. L.: Application of Southern Freight Association to cancel 
special rate of 60 cents per net ton from Goldsboro to Farmville and 
Greenville, account completion of project. Approved. Docket 646. 

Sand, C. L.: Application of Southern Freight Tariff Bureau to cancel 
special rate of $1.00 per net ton from Goldsboro to Center Hill and 
Columbia, account project completed. Approved. Docket 116. 

Sand, C. L.: Application of Southern Freight Tariff Bureau for 
relief from C. S. 1072, via circuitous routes in connection with rates of 
70 cents and 60 cents per ton from Goldsboro to Durham and Raleigh. 
Granted. Docket 646. 

Sand, C. L.: Application of Southern Freight Tariff Bureau to can- 
cel special rate of $1.15 per net ton from Goldsboro to King, Dalton, 
and Pinnacle, account completion of project. Approved. Docket 116. 

Slabs, flooring or facing, magnesite composition, C. L.: Application 
of E. H. Dulaney to cancel Item 1460, Note B, Exceptions No. 17 to 
Southern Classification, providing 8th class and apply straight South- 
ern Classification rating of 7th class. Approved. Docket No. 1386. 

Stone, crushed, C. L.: Application of Atlantic and Yadkin Railway 
Company to cancel truck competitive rate of 38 cents per ton from Mt. 
Airy to Pinnacle, account completion of movement. Approved. Docket 
116. 

Stone, crushed, C. L.: Application of Atlantic Coast Line Railroad 
Co. to publish water competitive rate of 85 cents per ton from Lassiter 
to Plymouth, with relief from C. S. 1072, Long and Short Haul Law. 
Approved. Docket 106. 

Stone, crushed, C. L.: Application of Atlantic Coast Line Railroad 
Co. to publish proportional rate of 75 cents from Lassiter to Plymouth, 
when for water movement beyond, with relief from C. S. 1072. Grant- 
ed. Docket 1072. 

Stone, crushed, C. L.: Application of Atlantic Coast Line Railroad 
Co. to publish rate of 80 cents per net ton, from Lassiter to Roduca, 
with relief from C. S. 1072, Long and Short Haul Law. Approved. 
Docket 106. 

Stone, crushed, C. L.: Application of Atlantic Coast Line Railroad 
Co. to publish rate of 80 cents net ton from Lassiter to Tunis, with 
relief from C. S. 1072, Long and Short Haul Law. Approved. Docket 
106. 

Stone, crushed, C. L.: Application of Norfolk Southern Railroad 
Co. to publish rate of 80 cents per ton from Rockton to Belhaven, with 
relief from C. S. 1072, Long and Short Haul Law. Approved. Docket 
106. 

Stone, crushed or rubble, C. L.: Application of Norfolk Southern 
Railroad Co. to publish rate of 80 cents per net ton from Rockton to 
Edenton, Waddill, and Mackeys, with relief from C. S. 1072, Long and 
Short Haul Law. Approved. Docket 106. 

Stone, crushed, C. L.: Application of Norfolk Southern Railroad 



212 N. C. Utilities Commission 

Co. to publish rate of 85 cents per ton from Rockton to Plymouth, with 
relief from C. S. 1072. Approved. Docket 106. 

Stone, crushed, C. L.: Application of Norfolk Southern Railroad 
Co, to establish rate of 60 cents per net ton from Rockton to Seaforth, 
with relief from C. S. 1072, Long and Short Haul Law. Approved. 
Docket 106. 

Stone, crushed, C. L.: Application of Norfolk Southern Railroad 
Company to publish rate of 75 cents per ton from Rockton to Stantons- 
burg, with relief from C. S. 1072, Long and Short Haul Law. Approved. 
Docket 106. 

Stone, crushed, C. L.: Application of Seaboard Air Line Railway 
to cancel special rate of 75 cents per ton from Greystone to Pittsboro, 
account completion of project. Approved. Docket 116. 

Stone, crushed, C. L.: Application of Southern Freight Association 
to cancel rates from Goldsboro to Raleigh and Durham, account no 
movement. Approved. Docket 646. 

Stone, rubble, C. L.: Application of Seaboard Air Line Railway 
Co. to cancel special commodity rates on, from Greystone to North 
Carolina points, account no movement. Approved. Docket 106. 

Stone Screenings, C. L.: Application of Atlantic Coast Line Railroad 
Co. to publish rate of 96 cents net ton from Lassiter to Warsaw, with 
relief from C. S. 1072, Long and Short Haul Law. Approved. Docket 
106. 

Sugar, C. L.: Application of Southern Freight Association to revise 
truck competitive rates. Approved. Docket 1383. 

Tobacco, leaf: Application of Atlantic Coast Line Railroad Com- 
pany to cancel obsolete rates between New Bern, N. C. and Atlantic 
Coast Line Railroad stations published on Pages 73, 74, and 75 of its 
Carolina Tariff No. 4, ICC No. B-2643. Approved. Docket 116. 

Tobacco, leaf, unmanufactured, A. Q.: Application of Southern 
Freight Tariff Bureau to publish rate of 29 cents per 100 pounds from 
Stoneville to Durham, with relief from C. S. 1072, Long and Short 
Haul Law. Approved. Docket 454. 

Tobacco, unmanufactured: Application, as amended of Southern 
Freight Tariff Bureau to cancel obsolete rates and make more uniform 
commodity descriptions published in F. T. 270-A (Unmanufactured 
Tobacco) ICC 1932 (C. R. Young Series). Approved. Docket 454. 

Transit: Application of Louisville and Nashville Railroad Company 
to reduce period of four years now published in GFO. No. 28-H 
(Lumber) to twelve months with the privilege of an additional period 
of twelve months and reduce period of four years now published in 
GFO. No. 181-H (Lumber) to twenty-four months, with the privilege 
of an additional period of twelve months. Granted. Docket 961. 

Transit Rules: Application of Southern Freight Tariff Bureau to 
provide that claims for readjustment of freight charge be made within 
12 months from date of outbound shipment from transit point. Ap- 
proved. Docket 1017. 



Decisions and Adjustments of Complaints 213 

Vegetables, C. L., L. C. L., and A. Q.: Application of Southern 
Freight Association to publish revised rates and ratings. Ratings 
approved. Rates denied. Docket 910 class rates authorized. Docket 652. 

Vegetables, viz: squash: Application of Southern Freight Associa- 
tion to cancel rating and minimum weight on winter squash, eliminate 
the word "summer" from commodity description governing summer 
squash and permit present summer squash rating and minimum weight 
to apply on all kinds of squash. Approved. Docket 652. 

Yarn, cotton: Application of Railway Express Agency to cancel 
rates published in ICC 2846, NCUC No. 164, account no movement. 
Approved. Docket 1375. 

Claims 

Atlantic Coast Line Railroad Company: Application to waive col- 
lection of undercharge of $21.78 covering car SAL 16603 containing 
150 bags fertilizer, 50 bags sulphate of ammonia and 100 bags basic 
slag shipped by East Coast Fertilizer Company, Wilmington, on March 
17, 1936, consigned to Farmers Supply Company, Lincolnton, N. C. 
Fertilizer description subsequently amended to include basic slag. 
Authorized. Docket 1177. 

Atlantic Coast Line Railroad Company: Application to refund to 
State Highway and Public Works Commission $30.92 reparation two 
cars crushed stone from Greystone to Pinetops which moved prior to 
removal of East Carolina Railway Company arbitrary. Approved. 
Docket 982. 

Atlantic Coast Line Railroad Company: Application to waive collec- 
tion of undercharge of $43.20 on car UTLX 20477, petroleum fuel oil 
from Wilmington, July 14, consigned to B. L. Langdon, Slocomb, based 
on rate of 14 cents established August 15, 1938. Authorized. Docket 
1395. 

Atlantic Coast Line Railroad Company: Application to refund to 
Virginia-Carolina Chemical Company $36.68 on GATX 8164 tank car of 
sulphuric acid from Selma, June 25, 1937, consigned to Dixie Guano 
Company, account movement prior to establishment of reduced rate. 
Authorized. Docket 1160. 

Norfolk and Western Railway Company: Application to waive col- 
lection of an outstanding undercharge of $517.26 on 9 carloads of 
gasoline from Wilmington to Durham, consigned to American Oil Com- 
pany during period May 21, 1936, to July 7, 1936 — Combination rate 
applied — Through rate established. Granted. Docket 1158. 

North Carolina Cotton Manufacturers Association, Inc.: Claim 
against Seaboard Air Line Railway in the amount of $182.66, covering 
several shipments of unfinished cotton fabrics from Kannapolis to Roa- 
noke Rapids, satisfactorily adjusted. Docket 1075. 

Norfolk Southern Railroad Company: Application to reduce charges 
on one car petroleum products — USQX 7101, erroneously billed from 
Fort Bragg, N. C, to Sewall's Point, Virginia, as an empty car. Car 
stopped at Varina and returned. Amount involved, $195.20. Approved. 
Docket 1110. 



214 N. C. Utilities Commission 

Norfolk Southern Railroad Company: Application to refund to 
B. Mifflin Hood Tile Company, Norwood, $262.29 on 7 cars of clay from 
Carolina Fireproofing Company, N. C, in June, 1937, prior to estab- 
lishment of special rate of 50 cents. Authorized. Docket 1193. 

Norfolk Southern Railroad Company: Application to waive collec- 
tion of undercharge of $9.36 on NH 164121 car of common brick 
shipped by L. C. Isenhour, Colon, August 10, 1936, consigned to 
Algerion Blair, Wilmington, due to failure to observe shipper's orders 
for car. Authorized. Docket 1399. 

Norfolk Southern Railroad Company: Application to refund $257.05 
to Lillington Stone Company on 12 cars of sand from Bunlevel Pit to 
Plymouth during month of April, 1937, cars having moved prior to 
establishment of special rate of 90 cents per ton. Approved. Docket 
1025. 

Norfolk Southern and Atlantic and Yadkin: Joint application to 
waive collection of an undercharge of $3,109.99 covering 26 carloads 
of loam soil from Terra Ceia, August 31, 1936, to November 19, 1937, 
consigned to Armour Fertilizer Works, Greensboro, based on rate of 
$1.90 established subsequent to movements. Authorized. Docket 1180. 

Seaboard Air Line Railway: Application to waive collection of 
undercharge of $62.25 on five cars of gravel from Gravelton to Monroe, 
October 16, 1937, for account of N. C. State Highway and Public 
Works Commission, based on truck competitive rate of 50 cents sub- 
sequently established. Authorized. Docket 1317. 

Seaboard Air Line Railway and Atlantic and Yadkin Companies: 
Joint application to waive undercharge of $6.03 on one ton of humus 
from Wilmington to Greensboro, May 13, 1938, for account of Swift 
and Company, based on fertilizer, rate subsequently established. 
Authorized. Docket No. 1304. 

Seaboard Air Line Railway and Laurinburg and Southern Railroad: 
Joint application to refund to Virginia-Carolina Chemical Corp'n. 
$92.10, reparation on 3 carloads of sulphuric acid from Wadesboro to 
Laurinburg, during month of June, 1937, prior to establishment of 
special rate of $1.55 per net ton. Authorized. Docket 1281. 

Southern Railway Company: Application to refund to the Erwin 
Cotton Mills, Durham, $39.74 on two carloads of pulverized talc from 
Murphy to Durham, August 28, and September 21, 1937, account 
erroneous cancellation legal rate. Authorized. Docket 1159. 

Southern Railway Company: Application to refund to N. C. State 
Highway and Public Works Commission $73.30 on 14 carloads of 
crushed stone from Sevier to Kings Mountain, June 18 and 19, 1937, 
account interstate distance and rate lower than intrastate distance and 
rate. Authorized. Docket 1190. 

Southern Railway Company: Application to adjust freight charges 
in amount of $265.93 for account of Old Dominion Box Company, 
covering 14 carloads of woodpulp board from Sylva to Charlotte, 
December 2, 1935, to May 11, 1936, inclusive, account establishment 
of lower rate subsequent to movement. Authorized. Docket 1176. 



Decisions and Adjustments of Complaints 215 

Southern Railway Company: Application to refund to Raleigh 
Granite Company overcharge of $14.39 (including interest) on car of 
crushed stone. Authorized. Docket 445. 

IN THE MATTER OF REVISION OF CLASS RATES FOR INTRA- 
STATE APPLICATION WITHIN THE STATE OF NORTH CARO- 
LINA. 

Order 
It appearing to this Commission from a consideration and compu- 
tation of the interstate class rates between North Carolina, on the one 
hand, and Virginia and Official territory on the other, which became 
effective on November 2 and November 5, 1936, by virtue of an order 
made by the Interstate Commerce Commission in Docket No. 21665, 
and that the said interstate class rates are materially lower than the 
North Carolina intrastate rates, thereby causing undue and unreason- 
able advantage and preference in favor of persons and localities 
engaged in said interstate commerce and undue discrimination, preju- 
dice and disadvantage to the shippers and localities engaged in intra- 
state commerce within North Carolina; 

It is, therefore, ordered that all common carriers by rail engaged 
in intrastate commerce between points in the State of North Carolina; 
namely, Aberdeen and Rockfish Railroad Co.; Asheville & Craggy 
Mountain Railway; Asheville Southern Railway Co.; Atlantic and 
Carolina Railroad Co.; Atlantic & North Carolina Railroad Co.; Atlantic 
& Western Railroad Co.; Atlantic & Yadkin Railway Co.; Atlantic 
Coast Line Railroad Co.; Black Mountain Railway Co.; Cape Fear 
Railways, Inc.; Carolina Southern Railway Co.; Carolina & North- 
western Railway Co.; Carolina & Tennessee Southern Railway Co.; 
Cliff side Railroad Co.; Carolina, Clinchfield and Ohio Railway; Dan- 
ville & Western Railway Co.; Durham & Southern Railway Co.; East 
Carolina Railway; East Tennessee & Western North Carolina Railroad 
Co.; Graham County Railroad Co.; High Point, Randleman, Asheboro 
and Southern Railroad Co.; High Point, Thomasville & Denton Railroad 
Co.; Laurinburg & Southern Railroad Co.; Lawndale Railway & 
Industrial Co.; Linville River Railroad Co.; Louisville & Nashville 
Railroad Co.; Maxton, Alma & Southbound Railroad Co.; Moore 
Central Railway Co.; Norfolk & Western Railway Co.; Norfolk 
Southern Railroad Co. (Morris S. Hawkins and L. H. Windholz, Re- 
ceivers); Piedmont & Northern Railway Co.; Rockingham Railroad 
Co.; Seaboard Air Line Railway (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers); Southern Railway Company; State University 
Railroad Co.; Tallulah Falls Railway Co.; Tennessee & North Carolina 
Railway Co.; Tuckaseegee & Southeastern Railway Co.; Virginia & 
Carolina Southern Railroad Co.; Warrenton Railroad Co.; Wilmington, 
Brunswick & Southern Railroad Co.; Winston-Salem Southbound Rail- 
way Co., and Yadkin Railroad Co., be and each of them is hereby 
cited to appear before this Commission on February 2, 1937, at 10:00 
o'clock A. M. in the office of the Utilities Commission in the City of 



216 N. C. Utilities Commission 

Raleigh and show cause, if any they have, why the intrastate class 
rates in North Carolina should not be reduced. 
This the 29th day of December, 1936. 

By order of the Commissioner : Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 910. 

IN THE MATTER OF REVISION OF CLASS RATES FOR INTRA- 
STATE APPLICATION WITHIN THE STATE OF NORTH CARO- 
LINA. 

Order 

Appearances for Respondents: 

Joseph Marks, Chief Commerce Counsel, Southern Railway Com- 
pany, Washington, D. C. 

L. P. King, Assistant Freight Traffic Manager, Seaboard Air Line 
Railway, Norfolk, Virginia. 

H. V. Borjes, Assistant General Freight Agent, Atlantic Coast 
Line Railroad Company, Wilmington, N. C. 

C. H. Ware, General Freight Agent, Norfolk Southern Railroad 
Company, Norfolk, Virginia. 

E. W. Dozier, Traffic Manager, Atlantic and North Carolina Rail- 
road Company, Morehead City, N. C. 

A. L. Thompson, Traffic Manager, Atlantic & Yadkin Railway, 
Greensboro, N. C. 

Appearances for Shippers: 

Carl R. Cunningham, Manager, Traffic Department, North Caro- 
lina Manufacturers Association, Atlanta, Georgia. 

W. S. Creighton, Traffic Secretary-Treasurer, North Carolina 
Traffic League, Charlotte, N. C. 

C. W. Strickland, Traffic Manager, Proximity Manufacturing 
Company, Greensboro, N. C. 

The investigation of class rates for intrastate application within the 
State of North Carolina was ordered by the Commission on the 29th 
day of December, 1936, and all common carriers by rail were cited to 
appear before it and show cause, if any they had, why these intrastate 
class rates should not be reduced. The citation was issued following 
the publication of rates between Virginia and between official territory, 
on the one hand, and North Carolina, on the other, in compliance with 
an opinion and order of the Interstate Commerce Commission dated 
December 9, 1935, under its Docket No. 21665, North Carolina 
Corporation Commission v. Akron, Canton & Youngstown Railway 
Company, et al., reported at 213 ICC 259. In that decision the Interstate 
Commerce Commission found that the class rates between points in 
official territory, on the one hand, and points in Southern Virginia and 
North Carolina, on the other hand, were unjust and unreasonable; and 
also that the class rates between points in Virginia and points in North 
Carolina were found to be unjust and unreasonable. Just and reason- 
able rates were prescribed. In the construction of interterritorial class 
rates the Commission prescribed a scale of factors for hauls in southern 
territory south of gateways located on the Virginia Railway from 
Roanoke to Norfolk, Va., both inclusive, and Bristol, Va.-Tenn., to be 



Decisions and Adjustments of Complaints 217 

added to differentials prescribed, in accordance with its Finding 1, 
for hauls in official territory. These factors are shown in Appendixes 
B and C, respectively, to the Commission's report and will hereinafter 
be referred to as the B-C Formula. A different scale of rates, referred 
to as Appendix D, was prescribed between points on and south of the 
Virginian Railway in the State of Virginia, on the one hand, and North 
Carolina, on the other hand. The B-C Formula is held as maximum 
in constructing rates over routes consisting in part of lines of the 
Chesapeake & Ohio, the Virginian, and the Norfolk & Western (other 
than the Winston-Salem and Durham divisions). 

Prior to the effective date of rates prescribed in Docket No. 21665, 
the 13494, K-2 rates, which became effective on January 15, 1928, 
applied between Virginia, including Hagerstown, Md., on the one 
hand, and North Carolina, on the other, which rates were the same, 
mile for mile, as the present North Carolina intrastate rates. As a 
result of a complaint filed with the Interstate Commerce Commission 
by the Virginia Corporation Commission, Docket 16321, (161 ICC 273), 
it was found that intrastate rates and charges in North Carolina on 
Carolina on class rates were unduly prejudiced to shippers and locali- 
ties in North Carolina, and unjustly discriminatory against interstate 
commerce. Undue prejudice and preference and unjust discrimination 
were ordered removed; however, the order was vacated and this Com- 
mission ordered the Docket 13494 level of rates into effect on North 
Carolina intrastate traffic, effective June 10, 1930. At that time the 
Southern territory in Virginia was considered as being south of the 
Norfolk & Western Railway. However, inasmuch as 13494 rates ap- 
plied between all points in Virginia, as far north as Alexandria, Va., 
and Hagerstown, Md., and North Carolina, southern territory could 
be defined or described as including the entire State of Virginia. As 
a matter of fact rate comparisons in that case were not confined to 
points from and to southern Virginia. 

Respondents moved to hold the proceedings in the instant case in 
abeyance pending the investigation of Southern Class Rates instituted 
by the Interstate Commerce Commission under its Docket No. 27655. 
This motion was overrules for the same reason that in State Corpora- 
tion Commission of Virginia v. Aberdeen & Rockfish Railroad Com- 
pany, I.C.C. Docket 16321, supra, a similar motion was made to 
consolidate that case with the investigation under Docket No. 21665. 
The Commission replied that if the Virginia shippers were entitled to 
have the North Carolina rates raised to a level of the Virginia rates, 
then they should not be required to wait until the termination of 
Docket 21665. We feel that if North Carolina shippers are entitled to 
have their rates reduced to a level of rates enjoyed by their competitors 
in Virginia and official territory they should not be required to wait 
until the termination of Docket No. 27655. 

The respondents feigned confusion at the scope of the citation. 
There was no basis for confusion as to what .the citation meant. The 
language was clear, direct and unmistakable. We quote from it as 
follows: 



218 N. C. Utilities Commission 

"It appearing to this Commission from a consideration and 
computation of the interstate class rates between North Carolina, 
on the one hand, and Virginia and Official territory on the other, 
which became effective on November 2, and November 5, 1936, 
by virtue of an order made by the Interstate Commerce Commis- 
sion in Docket No. 21665, and that the said interstate class rates 
are materially lower than the North Carolina intrastate rates, 
thereby causing undue and unreasonable advantage and preference 
in favor of persons and localities engaged in said interstate com- 
merce and undue discrimination, prejudice and disadvantage to 
the shippers and localities engaged in intrastate commerce within 
North Carolina;" 

No one knows better than the respondents that Docket 21665 
involved rates from all points north into North Carolina, and no one 
knows better than the respondents that official territory is north of 
that section in southern Virginia and yet the respondents contended 
at the hearing that they believed that the rates involved in the instant 
proceeding were only the rates between southern Virginia and North 
Carolina. Such an interpretation of the citation is far-fetched and 
would appear to be knowingly designed to becloud the issue and 
escape meeting fairly the issues clearly and unmistakably stated in 
the citation. 

The respondents made comparisons only of North Carolina intra- 
state rates with Docket 21665 Appendix D rates ignoring the rates 
applying between official territory and North Carolina, therefore fail- 
ing to meet the issues involved. 

Respondents averred that should this Commission prescribe 
Appendix D scale or any basis other than the present K-2 rates for 
intrastate application within North Carolina, a new border problem 
would immediately be created at the South Carolina boundary; that 
there would be this basis in North Carolina and the K-2 scale appli- 
cable interstate between North Carolina and South Carolina. It is 
their fear that the South Carolina Commission would immediately cite 
them to show cause why the South Carolina intrastate class rates 
should not be adjusted. There have been no changes in the interstate 
rates between North Carolina and South Carolina. The movement of 
traffic between these two States is negligible. There has, however, 
been a downward revision in the class rates between Virginia and 
North Carolina as well as interterritorially between official territory 
and North Carolina from and to which the preponderance of North 
Carolina's commerce moves. 

It is contended that the Appendix D scale, if made applicable within 
North Carolina, would be negligible to both the carriers and the ship- 
pers alike. This scale of rates would, according to the evidence, reduce 
revenues approximately $10,000 per year. For this reason it is believed 
that the carriers would not be averse to the application of Appendix D 
rates on North Carolina intrastate traffic, yet it was later intimated 
that the slightest reduction would cause a 13th Section complaint 
which would be filed tot the purpose of keeping rates within southern 
territory on a uniform basis. They seem to be alarmed over the under- 
mining of the entire rate structure in the south as result of reducing 
North Carolina rates. 



Decisions and Adjustments of Complaints 219 

The Appendix D scale is slightly lower than the K-2 scale for 
distances up to 190 miles; from 190 to 400 miles the scales are the 
same; and for distances over 400 miles, the Appendix D scale is slightly 
higher than the K-2 scale. The Appendix D scale creates a discrimina- 
tion against both intrastate and interstate rates; against the former 
to the extent that they are lower than the intrastate rates up to 190 
miles, and against the latter to the extent that they are lower than 
interstate rates for distances greater than 400 miles. 

Therefore, for the purpose of this investigation not only the 
appendix D scale but the B-C Formula will be considered in comparing 
interstate rates with intrastate rates. 

In 1891 a standard tariff of class rates was fixed for application 
within North Carolina which began with 12 cents for single line hauls 
of 5 miles, up to 66 cents for 270 miles. Joint line rates were made 
5 cents per hundredweight in addition thereto. These rates remained 
in effect until 1918 at which time they were increased 25 per cent. 
Again in 1920 there was another 25 per cent increase. The combined 
increases were equivalent to an increase of 58 1/3 per cent. In 1922 
all rates were reduced 10 per cent. Since then and prior to 1930 class 
rates were 41 2/3 per cent higher than they were before the general 
increases. In 1930 class rates were published on basis of the 13494, K-2 
scale, resulting in rates 183 1/3 per cent and 80 per cent for 5 and 270 
miles, respectively, higher than prior to 1918. This percentage was 
not as great for joint-hauls, being for 5 miles, 100 per cent and 270 
miles, 66 per cent. 

In order that the Commission might have before it a full picture 
of the interstate and intrastate rate structures, it subpoenaed the North 
Carolina Traffic League to present the shippers' views on this matter. 
A number of exhibits were introduced by its witness which are con- 
sidered invaluable in this investigation. In Docket 16321 the Interstate 
Commerce Commission held that the circumstances and conditions 
surrounding the transfer of freight within North Carolina were sub- 
stantially the same as the conditions and circumstances surrounding 
the handling of similar freight at points in Virginia in southern terri- 
tory, on the one hand, and North Carolina, on the other. The exhibits 
referred to herein were not confined to comparisons from points south 
of the Virginian Railway but also included comparisons in rates from 
many other points, such as Norfolk, Suffolk, Jarratt, Alberta, Meherrin, 
Brookneal, Altavista, Roanoke, Bristol, Lynchburg, Richmond, and 
Alexandria, Va., Baltimore and Hagerstown, Md., and Charleston, 
W. Va. 

From eight gateways along the Virginian Railway, namely. Alberta, 
Altavista, Brookneal, Jarratt, Meherrin, Norfolk, Roanoke, and Suffolk; 
also Bristol on the N&W Railway, to 133 rate group points in North 
Carolina from and to which rates are made by either the B-C Formula 
or Appendix D scale, there are both increases and reductions. The 
average percentage reduction under North Carolina rates range from 
3.59 per cent at Suffolk, Va., to 10.70 per cent at Bristol, Va. The 
average reduction from these nine points to the 133 North Carolina 
points is 5.52 per cent. 



220 N. C. Utilities Commission 

From Richmond and Lynchburg, two central Virginia points, which 
are located in and taking official territory rates, to all North Carolina 
points to which the K-2 rates, minus arbitraries, apply, the amounts 
of reduction under the North Carolina rates for comparative distances 
are 5.63 per cent and 5.77 per cent, respectively. 

From Alexandria, Va., Hagerstown, Md., and Charleston, W. Va., 
from and to which K-2 rates applied prior to the effective date of 
21665 rates, to and from North Carolina points not located on short 
or weak lines, the reductions are greater, being 11.83 per cent from 
Alexandria, 14.89 per cent from Hagerstown and 14.39 per cent from 
Charleston. The B-C Formula rates from Baltimore, Md., are 85.74 
per cent of North Carolina K-2 rates, or 14.26 per cent lower. 

These calculations reveal that rates within North Carolina could 
be reduced 10.33 per cent. Such would place North Carolina shippers 
and receivers of freight on a parity with competitors north of her in 
Virginia, West Virginia, and Maryland. 

The average distance between the Virginian Railway gateways, and 
Bristol, Va., on the one hand, and all North Carolina rate basis points, 
on the other, is 230 miles. This average distance at rates prescribed 
in I.C.C. Docket 21665 for hauls in southern territory combined with 
rates up to the southern gateways for hauls of 10 to 600 miles in of- 
ficial territory, shows that North Carolina rates are 110.26 per cent of 
the B-C Formula rates, or that the latter rates are 90.69 per cent of the 
North Carolina rates. This indicates that rates in North Carolina could 
be reduced 9.31 per cent and not discriminate against interstate ship- 
pers and shipments, nor by any means prefer intrastate shippers and 
shipments. However, since it is not possible for traffic to move in 
intrastate commerce between two points at a greater distance thap 
620 miles, and for the purpose of arriving at a more equitable figure 
for use in reducing intrastate class rates, we will use rates for distances 
of 10 to 380 miles in official territory plus the rate south of the 
Virginian Railway gateways and Bristol, Va., for 230 miles, or a 
maximum of 610 miles. By such. North Carolina rates are 108.47 per 
cent of the B-C Formula, and the latter 92.19 per cent of the North 
Carolina rates. This would justify reductions in present rates of not 
less than 7.81 per cent. 

In 1930 the Interstate Commerce Commission required this State 
to raise its intrastate rates to the level of the interstate rates as a 
result of a complaint filed by the State Corporation Commission of 
Virginia v. Aberdeen & Rockfish Railroad Company, supra. We now 
find the situation reversed. As the result of a reduction in interstate 
rates from Virginia and other points north, to North Carolina, the 
intrastate rates within our State are higher than the rates from and 
to points north of our State and, therefore, it must follow that it is 
the duty of this Commission to remove the discrimination which has 
been created against our intrastate shippers and to lower our intrastate 
rates to the level of interstate rates just as we were required by the 
Interstate Commerce Commission to raise our intrastate rates to the 
level of the interstate rates. 



Decisions and Adjustments of Complaints 221 

As to the border troubles in South Carolina about which the 
respondents express fear, their argument was that while they admitted 
some discrimination exists between intrastate shippers in North Caro- 
lina by reason of lower rates between points north and North Carolina, 
yet they contended that this discrimination should be continued against 
our North Carolina intrastate shippers in order that the carriers might 
not be troubled later with South Carolina. This argument the Com- 
mission regards as less than specious. 

We find that intrastate rates within North Carolina are unjust and 
unreasonable resulting in advantage and preference in favor of persons 
and localities engaged in interstate commerce between points in official 
territory and Virginia, on the one hand, and North Carolina, on the 
other hand, and unduly discriminatory and prejudicial to shippers and 
localities engaged in intrastate commerce within North Carolina. 

We further find that reasonable maximum rates on North Carolina 
intrastate traffic are those shown in Appendix 'A" attached hereto; 
said rates to be governed by the Southern Classification and Exceptions 
thereto. 

It is therefore ordered, That common carriers by rail be, and 
they are hereby ordered and directed to make effective on and after 
August 15, 1937, class rates as shown in Appendix 'A" attached 
hereto, for application on intrastate traffic within the State of North 
Carolina, to be governed by the Southern Classification and Exceptions 
thereto. 

It is further ordered, That the arbitraries set out in said Appendix 
"A" may be authorized in addition to the scale of rates herein pre- 
scribed, for account of so-called short or weak lines specifically 
designated therein. 



This 16th day of June, 1937. 



Stanley Winbourne, 

Commissioner 

F. L. Seely, 

Associate Com,missioner 

Frank W. Hanft, 
Associate Com,m,issioner 



By order of the Commission 
R. O. Self, Chief Clerk. 
(Seal) 



222 



N. C. Utilities Commission 



APPENDIX **A" 
Maximum Class Rates 

Classes 123456789 10 11 12 

Percentage Relationship.. 100 85 70 55 45 40 35 30 25 22V2 20 17V2 

Appicable to Common Carriers in Groups A and B of Circular No. 352, 
supplements thereto and successive issues thereof. 



Distances 



5 miles 

10 miles 

15 miles 

20 miles 

25 miles 

30 miles 

35 miles 

40 miles 

45 miles 

50 miles 

55 miles 

60 miles 

65 miles 

70 miles 

75 miles 

80 miles 

85 miles 

90 miles 

95 miles 

100 miles 

110 miles 

120 miles 

130 miles 

140 miles 

150 miles 

160 miles 

170 miles 

180 miles 

190 miles 

200 miles 

210 miles 

220 miles 

230 miles 

240 miles 

260 miles 

280 miles 

300 miles 

320 miles 

340 miles 

360 miles 

380 miles 

400 miles 

420 miles 

440 miles 

460 miles 

480 miles 

500 miles 

520 miles 

540 miles 

560 miles 



and under 

and over 5. 
and over 10. 
and over 15. 
and over 20. 
and over 25. 
and over 30. 
and over 35. 
and over 40. 
and over 45. 
and over 50. 
and over 55. 
and over 60. 
and over 65. 
and over 70. 
and over 75. 
and over 80. 
and over 85. 
and over 90. 
and over 95. 
and over 100. 
and over 110. 
and over 120. 
and over 130. 
and over 140. 
and over 150. 
and over 160. 
and over 170. 
and over 180. 
and over 190. 
and over 200. 
and over 210. 
and over 220. 
and over 230. 
and over 240. 
and over 260. 
and over 280. 
and over 300. 
and over 320. 
and over 340. 
and over 360. 
and over 380. 
and over 400. 
and over 420. 
and over 440. 
and over 460. 
and over 480. 
and over 500. 
and over 520. 
and over 540. 



Rate 


(S in 


Cents 


















CLASSES 




















1 


2 


3 


4 


5 


6 


7 


8 


9 


10 


11 


12 


31 


26 


22 


17 


14 


12 


11 


9 


8 


7 


6 


5 


33 


28 


23 


18 


15 


13 


12 


10 


8 


7 


7 


6 


36 


31 


25 


20 


16 


14 


13 


11 


9 


8 


7 


6 


38 


32 


27 


21 


17 


15 


13 


11 


10 


9 


8 


7 


41 


35 


29 


23 


18 


16 


14 


12 


10 


9 


8 


7 


42 


36 


29 


23 


19 


17 


15 


13 


11 


9 


8 


7 


45 


38 


32 


25 


20 


18 


16 


14 


11 


10 


9 


8 


47 


40 


33 


26 


21 


19 


16 


14 


12 


11 


9 


8 


50 


43 


35 


28 


23 


20 


18 


15 


13 


11 


10 


9 


52 


44 


36 


29 


23 


21 


18 


16 


13 


12 


10 


9 


54 


46 


38 


30 


24 


22 


19 


16 


14 


12 


11 


9 


56 


48 


39 


31 


25 


22 


20 


17 


14 


13 


11 


10 


59 


50 


41 


32 


27 


24 


21 


18 


15 


13 


12 


10 


61 


52 


43 


34 


27 


24 


21 


18 


15 


14 


12 


11 


63 


54 


44 


35 


28 


25 


22 


19 


16 


14 


13 


11 


65 


55 


46 


36 


29 


26 


23 


20 


16 


15 


13 


11 


66 


56 


46 


36 


30 


26 


23 


20 


17 


15 


13 


12 


67 


57 


47 


37 


30 


27 


23 


20 


17 


15 


13 


12 


68 


58 


48 


37 


31 


27 


24 


20 


17 


15 


14 


12 


70 


60 


49 


39 


32 


28 


25 


21 


18 


16 


14 


12 


73 


62 


51 


40 


33 


29 


26 


22 


18 


16 


15 


13 


76 


65 


53 


42 


34 


30 


27 


23 


19 


17 


15 


13 


78 


66 


55 


43 


35 


31 


27 


23 


20 


18 


16 


14 


81 


69 


57 


45 


36 


32 


28 


24 


20 


18 


16 


14 


84 


71 


59 


46 


38 


34 


29 


25 


21 


19 


17 


15 


87 


74 


61 


48 


39 


35 


30 


26 


22 


20 


17 


15 


89 


76 


62 


49 


40 


36 


31 


27 


22 


20 


18 


16 


90 


77 


63 


50 


41 


36 


32 


27 


23 


20 


18 


16 


92 


78 


64 


51 


41 


37 


32 


28 


23 


21 


18 


16 


94 


80 


66 


52 


42 


38 


33 


28 


24 


21 


19 


16 


96 


82 


67 


53 


43 


38 


34 


29 


24 


22 


19 


17 


98 


83 


69 


54 


44 


39 


34 


29 


25 


22 


20 


17 


100 


85 


70 


55 


45 


40 


35 


30 


25 


23 


20 


18 


101 


86 


71 


56 


45 


40 


35 


30 


25 


23 


20 


18 


105 


89 


74 


58 


47 


42 


37 


32 


26 


24 


21 


18 


109 


93 


76 


60 


49 


44 


38 


33 


27 


25 


22 


19 


113 


96 


79 


62 


51 


45 


40 


34 


28 


25 


23 


20 


116 


99 


81 


64 


52 


46 


41 


35 


29 


26 


23 


20 


120 


102 


84 


66 


54 


48 


42 


36 


30 


27 


24 


21 


124 


105 


87 


68 


56 


50 


43 


37 


31 


28 


25 


22 


127 


108 


89 


70 


57 


51 


44 


38 


32 


29 


25 


22 


131 


111 


92 


72 


59 


52 


46 


39 


33 


29 


26 


23 


134 


114 


94 


74 


60 


54 


47 


40 


34 


30 


27 


23 


137 


116 


96 


75 


62 


55 


48 


41 


34 


31 


27 


24 


139 


118 


97 


76 


63 


56 


49 


42 


35 


31 


28 


24 


142 


121 


99 


78 


64 


57 


50 


43 


36 


32 


28 


25 


145 


123 


102 


80 


65 


58 


51 


44 


36 


33 


29 


25 


148 


126 


104 


81 


67 


59 


52 


44 


37 


33 


30 


26 


150 


128 


105 


83 


68 


60 


53 


45 


38 


34 


30 


26 


153 


130 


107 


84 


69 


61 


54 


46 


38 


34 


31 


27 



Decisions and Adjustments of Complaints 223 

APPENDIX "A''— (Continued) 
Distances 1 2 3 4 5 6 7 8 9 10 11 12 

580 miles and over 560 156 133 109 86 70 62 55 47 39 35 31 27 

600 miles and over 580 159 135 111 87 72 64 56 48 40 36 32 28 

620 miles and over 600 161 137 113 89 72 64 56 48 40 36 32 28 

Rates for account of the Norfolk Southern Railroad (see Group C 
of Circular No. 352) shall be determined by adding the following 
arbitraries to rates published above for that part of the haul over the 
Norfolk Southern Railroad: 

First First 

Class Class 

Distances Arbitrary Distances Arbitrary 

10 miles and under 6 190 miles and over 160 15 

25 miles and over 10 7 220 miles and over 190 16 

40 miles and over 25 8 250 miles and over 220 17 

50 miles and over 40 9 290 miles and over 250 18 

65 miles and over 50 10 330 miles and over 290 20 

80 miles and over 65 11 370 miles and over 330 21 

100 miles and over 80 12 410 miles and over 370 22 

120 miles and over 100 12 450 miles and over 410 23 

140 miles and over 120 13 500 miles and over 450 24 

160 miles and over 140 14 Over 500 miles 25 

Rates for account of the carriers shown in Group D of Circular 
No. 352 shall be determined by the distance rates shown above for 
account of carriers shown in Groups 'A" and "B" of Circular No. 352, 
plus arbitraries similar to but not necessarily the same as those pre- 
scribed for account of the Norfolk Southern Railroad (Group "C" of 
Circular No. 352). 

Carriers may, in the publication of these rates, adopt the same 
system of grouping points as has been previous y authorized or 
approved by the Commission. 

Docket No. 910. 

IN THE MATTER OF PETITION OF RAIL CARRIERS TO REVISE 
COACH FARES BETWEEN POINTS IN THE STATE OF NORTH 
CAROLINA ON BASIS OF 2 CENTS PER MILE, ONE WAY AND 
ROUND TRIP. 

Order 
Appearances: 

E. N. Aiken, Southern Railway Company, and 

C. H. Gattis, Seaboard Air Line Railway, for petitioners. 

Under date of October 28, 1937, the Southeastern Passenger \^so- 
ciation through its agent, C. B. Rhodes, in behalf of rail carriers, pe- 
titioned for authority to revise the basis of one way coach fares in 
the State of North Carolina, where now established on basis of ap- 
proximately 1.5 cents per mile, or less than 2 cents per mile, and in- 
crease same to 2 cents per mile; and to increase round trip coach 
fares now published on basis less than 2 cents per mile in each di- 
rection to double the new one way coach fares. 

The matter was docketed for public hearing in my office on No- 
vember 12, 1937, at which no one appeared in opposition to the pro- 
posal. 

Petitioners stressed the necessity for additional revenues to meet 



224 N. C. Utilities Commission 

additional expenses, which, on the Southern Railway for the calen- 
dar year of 1938 are estimated to be $9,000,000, and on the Seaboard 
Air Line Railway to be approximately $2,000,000. Revenues of the 
Southern Railway during the current year are approximately 70% 
of those of 1933, during most of which a fare of 3.6 cents per mile 
was in effect. It is the belief of petitioners with the additional rev- 
enues proposed that at least they will be able to put the passenger 
service on a near-paying basis as compared with the freight, to bear 
its proper burden of the additional costs. 

The proposed increase in passenger fares will be insufficient to 
equal the increase in operating expenses, some of the elements of 
which are increased wages, advanced cost of materials, labor and 
Social Security taxes. 

On July 13, 1936, applications of the Atlantic Coast Line Railroad 
Company for authority to increase passenger fares between points on 
its line in North Carolina following order of the Interstate Commerce 
Commission prescribing 2 cents per mile in coaches throughout the 
nation, was heard, the same being granted on July 22, 1936. In that 
case it was testified that applicant was about to complete a compre- 
hensive plan of air-conditioning equipment, the cost of which ap- 
proximated $9,000.00 per coach. Since the fare of IV2 cents per mile 
became effective in North Carolina in 1933, the Southern Railway 
has air conditioned only its dining cars, however, steps are now being 
taken to air condition its coaches, a number of which are now in the 
shops for this purpose. The approximate cost of air conditioning each, 
it was testified, is $8,000.00. 

Competition and increasing demands from the public for more 
comfortable and convenient equipment necessitates tremendous ex- 
penditures in order to advance with progress in the transportation 
field and carriers can not expect to meet this requirement under pres- 
ent low fares. I am of the opinion that the rates proposed are not 
unreasonable. 

It is therefore ordered, That petitioners be, and they are hereby, 
authorized to increase their coach fares to 2 cents per mile to apply 
both one-way and round-trips. 

It is further ordered, That said increases are hereby authorized to 
become effective on November 15, 1937, simultaneously with the ef- 
fective date of interstate fares. 

It is further ordered. That sufficient cents may be added to the 
fares resulting hereunder so that all fares will end in or 5. 

This 13th day of November, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. 6. Self, Chief Clerk Commissioner. 

Docket No. 761 

(Seal) 



Decisions and Adjustments of Complaints 225 

IN THE MATTER OF REVISION BY RAIL CARRIERS OF TRUCK 
COMPETITIVE RATES ON COTTON (S. F. A. APPLICATION NO. 

142) 

Order 
Appearances: 

Joseph P. Cook, Counsel, and C. W. Dilli, Southern Railway 

System Lines for Applicants. 
W. N. Pendleton and J. M. Gloer, Atlantic Cotton Association, 

Atlanta, Georgia. 
I. M. Porter, N. C. Cotton Growers Cooperative Association, 

Raleigh, N. C. 
C. W. Strickland, Proximity Manufacturing Company, Greens- 
boro, N. C, for Protestants. 
By application dated June 17, 1937, filed with this Commission 
through Southern Freight Association, the rail carriers operating in 
North Carolina seek to revise their intrastate truck competitive rates 
on cotton which were published to expire with July 31, 1937, unless 
sooner cancelled, changed or extended, but later extended to August 
31, 1937. It is proposed that the revised rates will expire with July 
31, 1938, unless sooner cancelled, changed or extended. 

Hearing on the application was held in Raleigh on Wednesday, 
August 18, 1937, before Commissioner Winbourne and at the request 
of applicants the application was made a part of the record. 

The nature of cotton traffic is such as to make it particularly sus- 
ceptible to motor truck competition, and on June 27, 1931, rates be- 
low the maximum level previously prescribed by this Commission 
(see Circular 293) were published by the carriers to meet this com- 
petition. This scale applied on cotton (other than absorbent, carded 
or dyed), in bales, compressed or uncompressed, but not including 
cost of compression. On August 18, 1932, those rates were further 
reduced. At that time three scales were published, one to cover un- 
compressed cotton, another to cover cotton compressed in transit 
which included an allowance of 12 cents per 100 pounds for com- 
pression, and the third to cover compressed cotton. 

On September 9, 1932, another revision was made. The three scales 
were narrowed down to two scales. This resulted in slight reductions. 
Again on August 1, 1933, three scales were published resulting in 
slight increases for distances greater than 100 miles. 

These revisions were made prior to the effective date of Section 
16, Chapter 134 of the Public Laws of 1933, which reads in part as 
follows : 

"*** and no corporation *** doing business in the State of 
North Carolina as a public-service corporation, or any corpora- 
tion herein designated, shall be allowed to increase its rate and 
charge for service or change its classification in any manner 
whatsoever except upon petition duly filed with the Utilities Com- 
mission and inquiry held thereon and final determination of the 
reasonableness and necessity of any such increase or change in 
classification or service; ***" 

Therefore, on and after January 1, 1934, no increases may be made 
in any rate unless approved by the Commission. 



226 N. C. Utilities Commission 

The rates here proposed result in an increase of 1 cent for 75 
miles and under; 2 cents for 150 and over 75 miles; 3 cents for 250 
and over 150 miles; 4 cents for 410 and over 250 miles at which 
point the increases begin to run back toward the present scales, being 
the same for distances greater than 490 miles. 

The application states that increased costs prompts the carriers to 
undertake a slight increase in these cotton rates which, it is believed, 
may be made without resulting in any substantial loss of traffic. Under 
cross examination the carriers' witness testified that he anticipated 
that the proposed rates would increase the carriers' revenues. It is 
also indicated that since the establishment of the truck competitive 
rates the railroads have handled more of this traffic. 

In 1936 the total production of cotton within seven southern states 
was 4,112,792 bales contrasted with 4,251,755 bales in 1928, a re- 
duction of 138,763 bales. However, certain lines named in applicants' 
Exhibit No. 1 transported 392,507 tons, equivalent to 1,570,028 bales 
more in 1936 than they handled in 1928 in spite of a smaller produc- 
tion. 

In North Carolina applicants show that 1928's production was 869,- 
248 bales compared with 606,681 bales in 1936, a reduction of 262,567 
bales. 

They also show that the number of tons handled during the year 
1936 was 123.81 per cent of that handled during the year of 1928, 
but that the revenues for 1936 were but 64.46 per cent of those for 
the year 1928. 

Protestants indicated their preference for rail transportation and 
objected to the proposed increases stating that it would cause a further 
diversion to the highways as rates of truck companies are now on a 
basis of the present rail rates. The North Carolina Cotton Growers 
Association truck, under the present rates, over 50% of its cotton, 
and, its witness testified, will truck a larger percentage if the pro- 
posed rates are approved. 

The Proximity Manufacturing Company, operating 13 mills in the 
Piedmont and Western sections of the State consumed approximately 
240,000 bales of cotton during 1936-1937 season, 225,000 bales of 
which moved by rail, principally from Mississippi Valley and the 
Southwest, and the remainder by highway, which consisted of North 
Carolina and Virginia cotton. It seems that very little of their cotton 
from these two states moved by rail under the present rates. 

We are not authorized to approve expiration dates in connection 
with rates published to meet truck competition and where expiration 
dates are shown in tariffs they merely identify them as such from 
normal rates. Under the Laws of North Carolina no rates may be in- 
creased before obtaining the approval of this Commission. To allow 
rates issued to meet truck competition to automatically expire on 
dates published in connection therewith would have the effect of in- 
creasing them and would therefore be in violation of the law. 

Reduced rates were published by the railroads to meet competition 



Decisions and Adjustments of Complaints 227 

at a time when their competitors were unregulated. Today interstate 
motor vehicle carriers are subject to regulation and in a degree this 
is true as to intrastate operators. The reduction of these rates was 
made when the traffic could not bear the normal rates. The price of 
cotton has advanced since that time as well as costs of materials, 
supplies, equipment, labor, taxes, etc., and neither rail nor highway- 
carrier can operate profitably under the present rates. 

The proposed rates are somewhat lower than the maximum reason- 
able scale previously prescribed by this Commission and it is our 
opinion they will not result in preference or prejudice to any ship- 
per, receiver or locality. It is also believed that they are not such as 
to place an undue burden upon the traffic. 

It is therefore ordered, That Southern Freight Association Appli- 
cation No. 142 proposing truck competitive rates on cotton be ap- 
proved, except the expiration date which is not approved. 

It is further ordered, That the rates herein approved shall not be 
increased except upon approval of this Commission. 

This 27th day of August, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 137 
(Seal) 

IN THE MATTER OF REVISION OF TRANSIT RULES AND REGU- 
LATIONS OF RAIL CARRIERS IN CONNECTION WITH TRUCK 
COMPETITIVE RATES ON COTTON. (S. F. A. APPLICATION 
NO. 143) 

Order 
Appearances : 

Joseph P. Cook, Counsel, and C. W. Dilli, Southern Railway, 
System Lines for Applicants. 

W. N. Pendleton and J. M. Gloer, Atlantic Cotton Association, 
Atlanta, Georgia. 

I. M. Porter, N. C. Cotton Growers Cooperative Association, 
Raleigh, N. C. 

C. W. Strickland, Proximity Manufacturing Company, Greens- 
boro, N. C, for Protestants. 

By application dated June 24, 1937, filed through Southern Freight 
Association in behalf of North Carolina Rail Carriers, authority is 
sought to revise transit rules and regulations in connection with truck 
competitive cotton rates and hearing was held before the Commis- 
sioner on August 18, 1937, at the conclusion of the hearing on ap- 
plication for authority to revise truck competitive rates on cotton. 

It was suggested by representative of the Atlantic Cotton Associa- 
tion, and concurred in by other protestants, that no objection would 
be offered to the proposed rules but requested that the increased min- 
imum rate of 11 cents in lieu of present minimum of 10 cents per 100 
pounds, be not authorized if the proposed increased level of cotton 
rates covered by the Commission's Docket No. 137 is denied. 



228 N. C. Utilities Commission 

An order is being issued today approving Southern Freight As- 
sociation Application No. 142, Truck Competitive Rates on cotton and 
inasmuch as the matter here in issue is interrelated to those rates, it 
is our opinion that same should be allowed. 

It is therefore ordered, That Transit Rules and Regulations in 
connection with Truck Competitive rates on cotton be, and the same 
are, hereby approved. 

This 27th day of August, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 145 
(Seal) 

IN THE MATTER OF REVISION OF RATES ON COTTON, 1938 
REVISION OF TRANSIT RULES IN CONNECTION WITH TRUCK 
COMPETITIVE RATES ON COTTON. 

Order 
Appearances : 

Charles Clark and Carl W. Dilli, Southern Railway Company, 

Washington, D. C, for applicant. 
Sam C. Heard, Asst. Traffic Manager, Atlantic Cotton Associa- 
tion, Atlanta, Georgia. 

Applications for revision of both normal and truck competitive 
rates on cotton, and the revision of transit rules in connection with 
the latter (Nos. 156 and 155, respectively), were filed by the Southern 
Freight Association, through its Chairman, J. G. Kerr, in behalf of all 
rail carriers operating in North Carolina, on July 15, 1938. It was pro- 
posed by applicants that the revised rates and rules be made effective 
July 31, 1938, simultaneously with the effective date of interstate re- 
visions. 

Both reductions and increases are proposed in the normal rates, 
amounting to reductions for short distances and increases for long 
hauls. Likewise, two scales are now being proposed, the first of which 
to apply on cotton, in bales, uncompressed, but not including cost of 
compression, except that where rates are 58 cents per 100 pounds or 
higher, rates will apply on cotton, in bales, uncompressed, with privi- 
lege to carrier of compressing at origin or in transit. When carriers 
exercise this privilege, the cost of compression is included in the rate. 
The second scale proposed applies on cotton, delivered to carrier in 
standard compressed bales, and is the same as the first up to and 
including 95 miles, after which it is lower, being less for each mile- 
age block until a difference of 12 cents at 180 miles is reached. 

Only slight increases are proposed in the so-called truck competi- 
tive A-B-C mileage scales. The present normal rates are considerably 
higher than truck competitive rates. 

Petitions were filed with the Interstate Commerce Commission by 
many firms requesting suspension and investigation of the new inter- 



Decisions and Adjustments of Complaints 229 

state rates. That commission, however, decHned to suspend them and 
the said rates became effective on July 31, 1938. 

On August 22, amendments were filed to these applications and 
all were heard by me on September 19, 1938. 

The amendment to the rate application divides the present any- 
quantity truck competitive rates into carload and less than carload 
rates, the latter being further divided to provide rates for carload 
quantities of 25,000 pounds and 50,000 pounds, and are considerably 
less than the present normal any-quantity rates which were increased 
5 per cent on April 30, 1938 (Docket No. 1239) and lower than the 
present any-quantity rates as increased on September 1, 1937, and 
again on April 30, 1938, for distances of 460 miles and over. 

Applicants stated that the establishment of a carload system of 
rates for application in the Southeast and the Carolinas must carry 
with it some readjustment of the existing any-quantity rates which 
are now less than the carload rates from the Mississippi valley for 
distances as great as 400 miles. 

As the preponderance of movement by unregulated trucks is for 
distances within 200 miles, applicants propose no change for distances 
200 miles and less in the any-quantity truck competitive A-B-C mile- 
age scales in the original application. For distances exceeding 200 
miles it is proposed to gradually increase the previously submitted 
truck competitive A-B-C mileage scales so as to merge them at ap- 
proximately 600 miles with the so-called normal rate scales, herein 
referred to as being in the original application. 

It is contended that the reason for suggesting increases beyond 
200 miles is to secure more adequate revenue for the transportation of 
cotton, in less than carload quantities, beyond the area of truck com- 
petition. 

It is argued that the present plan of handling cotton within the 
Southeast and the Carolinas is very expensive to applicants, involving 
the handling over railroad platforms at country origins, thence into 
concentration points where there is the expensive handling through 
freight stations or costly switching service, or the absorption thereof, 
plus the outbound movement from concentration points to ultimate 
destinations which involves either loading and unloading by the rail- 
roads or else the performance or absorption of switching on small 
quantities. Also, that the present truck competitive scales do not re- 
sult in remunerative compensation for these expensive services. 

Representative of the Atlantic Cotton Association of Atlanta, Ga., 
who presented a list of its membership in North Carolina, numbering 
40, stated that they are in sympathy with the cotton rates which the 
rail lines propose to establish and requested that they be allowed to 
be made effective as soon as possible. The proposal of applicants to 
establish carload rates appears to remove all objections this associa- 
tion had against the original application. 

The carload and less than carload truck competitive rates pro- 
posed are not unreasonable. They are considerably less than the 



230 N. C. Utilities Commission 

normal any-quantity rates prescribed by this Commission several 
years ago. However, the normal rates proposed to be established in 
lieu of the present normal rates result in many increases. It is not 
believed that the present investigation is sufficiently broad to support 
a finding that would advance them. On the other hand, neither one 
of these normal scales would be used as long as there are lower truck 
competitive scales and it appears that the latter will be used so long 
as there is unregulated truck competition. Under our laws no rates 
may be increased without my permission and I am required to in- 
quire into and determine the reasonableness and necessity for such 
increases. This is as equally applicable to truck competitive rates as 
to normal rates. 

Insofar as the proposed revision of truck competitive rates is con- 
cerned, the application, as amended, will be approved. The proposed 
revision of normal rates is not approved. 

The application, as amended, covering transit rules in connection 
with the truck competitive rates herein approved also will be granted. 
The only change in the present rules involves only the minimum rate 
or charge and is required to correspond with the increased truck com- 
petitive rates. 

Consolidated Statute 3513 provides, without discretion, that rates 
shall not be increased except on 15 days' notice to this Commission 
and the public. There is, however, nothing to prevent the publication 
of reduced rates on less than 15 days' notice, if applicants desire to 
do so. 

It is therefore ordered. That Applications of the Southern Freight 
Association (Numbers 155 and 156), for authority to revise rates on 
cotton and transit rules in connection with truck competitive rates 
thereon, be, and the same are, hereby approved, except that normal 
rates proposed are not approved. 

This 3rd day of October, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket Nos. 1357 and 1358. 

IN THE MATTER OF REVISION OF RAIL RATES ON COTTON 
AND KNITTING FACTORY PRODUCTS AND ARTICLES RE- 
LATED THERETO. (S. F. A. APPLICATION NO. 144) 

Order 

Appearances : 

Joseph P. Cook, Carl W. Dilli, and R. B. Warner, for applicants; 
L. O. Kimberly, Jr., P. H. Johansen, and C. F. Bauserman, 
for protestants. 

All Rail carriers operating in this State, by application dated July 
13, 1937, filed through the Southern Freight Association, Atlanta, 
Ga., petition for authority to cancel all carload, less-than-carload or 
any quantity rates, except rates established to meet motor truck or 
water competition, and classification exceptions, on Cotton Piece 
Goods, Dry Goods, etc., and to apply in lieu thereof rates made on 



Decisions and Adjustments of Complaints 231 

basis of ratings as published in Item 530 of Note B to Exceptions No. 
16 to Southern Classification, Agent E. H. Dulaney's ICC No. 68, 
being 50% of 1st class for articles listed in Description 1; 45% of 
first class on Description 2; 50% of first class plus 5 cents on Descrip- 
tion 3; and 70% of first class on Description 4 articles. 

The application was heard in Raleigh on August 18, 1937. Rates 
are stated in cents per 100 pounds. 

Interstate rates on these commodities were before the Interstate 
Commerce Commission in I&S Docket No. 3636 wherein percentages of 
1st class rates, hereinabove shown, were prescribed on Descriptions 1 
and 2, whereas 1st class or 100% was found not to be unreasonable 
on Descriptions 3 and 4. However, the carriers established 50% of 
1st class plus 5 cents and 70% of 1st class rates on Descriptions 3 and 4 
and which bases they also propose on intrastate traffic in North Caro- 
lina made with relation to first class in effect prior to August 15, 1937, 
hereinafter called 13494 rates. 

At the time the interstate bases were established, they were also 
published on intrastate traffic since there were a number of com- 
modities included that were and are not covered by the description 
in our Circular No. 308, reproduced as Item 275 of Agent Roy Pope's 
Freight Tariff No. 629- A, ICC 1740 (Agent F. L. Speiden Series). 
On such shipments the revised rates were applied resulting in reduc- 
tions in numerous instances. 

Applicants compared the present single line and joint line mileage 
commodity rates with the proposed rates. The single line and joint 
line trunk line rates average 39.3% and 51.8% (in another exhibit 
an average of 36% and 39% are shown), whereas the 4 groups or 
descriptions into which it is proposed to place these various commodi- 
ties average 56.9%, 51.1%, 61.9%, and 79.5%, respectively. Also, 
applicants show that the present single and joint line scales on the 
cotton piece goods list average 35% and 38% of 13494 first class rates. 
The present and proposed rates were shown from 44 points of origin 
to 30 destination points with the present average rate being 34 cents 
compared with the proposed average rates of 44, 40, 49, and 62 cents 
on Descriptions 1, 2, 3, and 4, respectively. 

Protestants compared present rates with the proposed rates; the 
same percentages proposed of intrastate 1st class effective August 15, 
1937, hereinafter called Docket No. 910 rates; with Docket 21665, 
Appendix D Rates, and also with rates appreciable in official territory. 
The proposed rates result in increases ranging from V2 cent per 100 
pounds on yarn, for a joint haul of 40 miles, to 341/2 cents on towels 
for a single line haul of 500 miles, and will be from 1 cent to 12 cents 
higher than rates within Official territory for identical distances. 

The majority of articles included in the present commodity descrip- 
tion fall in proposed Description 1 — 50 % of 1st class. The remainder, 
viz: warp and yarn; bath mats, towels and diapers; and backbands, 
hosiery, knitting factory products, and underwear, will fall in 
Description 2 — 45%; Description 3 — 50% plus 5c; and Description 
4 — 70% of first class, respectively. Cotton bags are eliminated; how- 



232 N. C. Utilities Commission 

ever, they are provided for in another item in the Exceptions to 
Southern Classification. 

Protestants take the position that no action should be taken at this 
time because of the fact that the interstate rates are still involved in 
Interstate Commerce Commission's I&S Docket No. 3636, reopened. 
In the original proceeding, protestants state, it was sought to have 
rates on these commodities within the South and interterritorially 
between the South and the North, put on a parity with the Official 
territory rates, and that this will also be undertaken in the reopened 
proceedings. On the contrary the applicants' position is that this case 
will very likely last two years and as the present interstate rates were 
permitted to go into effect on June 8, 1937, it is contended that this 
application should not be held in abeyance pending results of I&S 
Docket No. 3636, reopened. 

The present intrastate rates have been in effect many years. How- 
ever, they have been disturbed to some extent by the Interstate Com- 
merce Commission from Charlotte, Durham, Greensboro, Salisbury, 
and Winston-Salem to the Eastern part of North Carolina. That Com- 
mission, in its Docket 16321, found the less-than-carload rates from 
and to these points to be unduly preferential of North Carolina 
shippers and unduly prejudicial to Norfolk shippers and ordered said 
preference and prejudice removed. Our less-than-carload rates on the 
articles named in Item 275 of Agent Roy Pope's Freight Tariff No. 
629-A have been for several years, and are now, on class rate basis. 

It is believed that some adjustment should be made in these rates 
in order to simplify the structure and at the same time make intrastate 
rates more uniform which would remove the many violations created 
by the Interstate Commerce Commission, Docket 16321, supra, 
contrary to Consolidated Statute 1072 of the Laws of North Carolina. 

From the facts of record, I find that applicants have failed to 
justify the proposed rates, but without prejudice to the filing of rates 
on the following basis which, in my opinion, are reasonable. 

(See Item 530 of Note B, Agent E. H. Dulaney's Exceptions 
No. 16 to Southern Classification for explanation of descriptions). 
Description 1 — 47^/2 % of Docket No. 910 first class. 
Description 2 — 45 % of Docket No. 910 first class. 
Description 3 — 47 V2 % of Docket No. 910 first class plus 5 cents 
for 100 pounds. 

Description 4 — (except knit goods and underwear described 
therein) 70% of Docket No. 910 first class. 

Knit Goods and Underwear as described in Description No. 4 — 
471/2 % of Docket No. 910 first class plus 10 cents per 100 pounds. 
It is therefore ordered. That the proposed rates have not been 
justified and that the application should be dismissed without prejudice 
to the filing of rates made percentages of Docket No. 910 First Class 
rates, specified in the foregoing opinion, on the descriptions therein 
named. 

This 12th day of October, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1048. (Seal) 



Decisions and Adjustments of Complaints 233 

IN THE MATTER OF INVESTIGATION OF RAIL FREIGHT RATES 
ON GASOLINE AND KEROSENE FROM RIVER TERMINAL AND 
FAYETTEVILLE. 

Order Permitting Intervention 

Upon consideration of the record in the above entitled case and 
application filed on behalf of the City of Wilmington, N. C, and the 
Wilmington Port-Traffic Association, Inc.; 

It is ordered, That the said City of Wilmington, N. C, and the 
Wilmington Port-Traffic Association, Inc., be, and they are hereby 
permitted to intervene and be treated as parties hereto, v^ith the right 
to have notice of and appear at the taking of testimony, produce and 
cross-examine v^itnesses and be heard on brief and on oral argument, 
if oral argument is had. 

This 9th day of July, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1318. 

IN THE MATTER OF APPLICATION (NO. 90) OF SOUTHERN 
FREIGHT ASSOCIATION THROUGH CHAIRMAN J. E. TILFORD, 
SEEKING TO REVISE RATES ON COTTONSEED, ITS PRODUCTS 
AND RELATED ARTICLES, CARLOAD AND LESS THAN CAR- 
LOAD BETWEEN POINTS IN NORTH CAROLINA. 

Order 
Appearances for Applicant: 

J. B. McMahon, Washington, D. C, for Southern Railv^ay. 
W. T. Weaks, Wilmington, N. C, for Atlantic Coast Line R.R. Co. 

G. R. Ward, Norfolk, Va., for Seaboard Air Line Railv^ay. 
Appearances for Protestants: 

H. E. Boyd, Wilmington, N. C, for Wilmington Port-Traffic 
Association, Inc., and the Wilmington Oil & Fertilizer Co. 

R. S. Oliver, Raleigh, N. C, for National Cottonseed Products 
Association. 

Ben Witherington, Goldsboro, N. C, for Southern Cotton Oil 
Company. 

J. R. Morgan, Farmville, N. C, for Farmville Oil & Fertilizer 
Company. 

Hearing on the above application and subject matter was held in 
the office of the Utilities Commissioner in Raleigh, N. C, on November 
19, 1935. 

The question had previously been before the Interstate Commerce 
Commission under its Docket No. 17000, Part 8, for the purpose of 
determining the reasonableness and propriety of rates on cottonseed, 
its products, and related articles in interstate commerce throughout 
the United States. After a number of hearings that Commission issued 
its report and order in 188 ICC 605 in w^hich it prescribed certain 
rates on various commodities. Rates v^ere made certain percentages 
of first-class rates and as a result of the findings of the Interstate 
Commerce Commission applicant proposes to apply betv^een points 



234 N. C. Utilities Commission 

in North Carolina on intrastate commerce the rates applicable intra- 
territorially throughout the South on interstate commerce. 
The following ratings and carload minima are proposed: 

Percent of Carload Minimum 

Commodity 1st class Weight (pounds) 

Cotton Linters or Fibre, Straight 221/2 40,000 

or mixed 30 29,000 

40 20,000 

Cottonseed, Cottonseed Cake, 
Cottonseed Meal, F la x s e e d 

Cake,, Flaxseed Meal 18 1/2 40,000 

Other Vegetable Cake & Meal 181/2 40,000 

Cottonseed Hulls 14 30,000 

Vegetable Oil, Fish Oil, Sea Ani- 
mal Oil, straight or mixed 25 30,000 (in box cars) 

*60,000 (in tank cars) 

Vegetable Oil Foots, Sediments, 

and Tank Bottoms: Indelible 20 30,000 (in bbls. or 

Greases, Indellible Tallows, drums) 
Soap Stock, etc., straight or 

mixed *60,000 (in tank cars) 



* 98% of shell capacity of tank governs if less than 60,000 pounds. 

Applicant called attention to the fact that the Federal Commission, 
on comment in the case before it, stressed the desirability and neces- 
sity of harmonizing the interstate and the intrastate rates on these 
various articles and that there were a number of 13th Section com- 
plaints considered in that investigation, one of which brought into 
issue North Carolina intrastate rates on cottonseed. No action was 
taken with reference to intrastate rates but it was suggested that it 
would be desirable if the State authorities harmonized their rates with 
the interstate rates that had been prescribed. 

Rates on cottonseed and cottonseed hulls, carload minimum 20,000 
pounds, within North Carolina have been in effect for several years. 
It is proposed to increase the carload minimum weight to 40,000 
pounds on cottonseed and 30,000 pounds on cottonseed hulls with in- 
creases in rates ranging from I1/2 cents per 100 pounds on cottonseed 
for single line hauls of 5 miles to 13 cents for a haul of 450 miles. On 
joint hauls practically no change is proposed in the rates for the first 
25 miles, however, commencing at 30 miles the increases range from 
1 cent per hundredweight to 11 cents for 450 miles. On cottonseed 
hulls the proposed rates are approximately the same as or lower than 
the rates proposed to be cancalled for distances up to 50 miles but 
increases from that point to the extent of 6 cents on single line hauls 
and 4 cents on joint hauls for 450 miles. 

There are in effect so-called truck competitive rates on cottonseed, 
carload minimum weight 30,000 pounds which will not be disturbed 
under the proposal. 

In connection with cottonseed and cottonseed hulls, less than car- 
load, applicants propose 6th class on the former with increases rang- 
ing from 100% for 5 miles to more than 300% for 450 miles. Fertilizer 
rates are proposed on cottonseed hulls, L.C.L., which are only slightly 
higher than present rates. 



Decisions and Adjustments of Complaints 235 

Slight increases are proposed in carload rates on cottonseed meal. 

It is not proposed to revise transit rates on cottonseed, carload; 
nor on vegetable oils and foots or sediments, carloads. 

The record is replete with testimony concerning low rates estab- 
lished on many of these commodities to meet truck competition. It 
reveals that the establishment of these low rates for distances up to 
150 miles, the extent of truck competition, was necessary in order to 
control the business for the rails and that the approval of the appli- 
cation here under consideration would merely place North Carolina 
rates on a parity with interstate rates without disturbing the truck 
competitive rates which would continue to apply even though they 
carry expiration dates and which would be extended from time to time 
until, if and when trucks are regulated as are the railroads. 

We do not see the necessity at this time of distributing the present 
rates by means of substituting therefor another level which, like the 
current rates, will not apply, especially for the period the lower truck 
competitive rates remain in effect. 

Exhibits were introduced comparing rates on cottonseed, cotton- 
seed hulls, cottonseed meal and cake, with fertilizer, feed, etc. It ap- 
pears that oil mills have no control over the prices they receive for 
their manufactured products. The price of cottonseed oil is determined 
from day to day by the price of hog lard and other competing fats; 
the price of cottonseed meal is determined by the value of soy bean 
meal, peanut meal, tankage, brewers' grains, as well as other protein 
concentrates, together with the prices of fertilizer materials; the price 
of cottonseed linters is fixed by the price of low-grade cotton, wood- 
pulp and other competing commodities; the price of cottonseed hulls 
is fixed by the supply and value of wild hay and other commodities. 
In order to calculate what price the farmer receives it is necessary to 
sum up the yield of these different products in a ton of cottonseed 
multiplied by their market values. Drastic increases in freight rates, 
such as here proposed, have the effect of greatly reducing the price 
to the farmer. 

We find that the application has not been justified and should be 
denied. 

It is therefore ordered. That Application of Southern Freight As- 
sociation seeking authority to revise rates on Cottonseed, Cottonseed 
Products, and related articles. Carloads and Less Than Carloads, be, 
and the same is hereby, denied and dismissed. 

This 12th day of July 1937. 

Stanley Winborne, 

Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 518. 
(SEAL) 



236 N. C. Utilities Commission 

IN THE MATTER OF REVISION OF RAIL RATINGS ON COTTON 
WARP, WICKING, NOIBN., COTTON YARN, NOIBN., AND JUTE 
YARN, AS DESCRIBED IN SUPPLEMENT NO. 11 TO SOUTHERN 
CLASSIFICATION NO. 54. (E. H. DULANEY APPLICATION NO. 
155.) 

Appearances : 

J. H. Steadwell, for applicants; 

L. O. Kimberly, Jr., for North Carolina Cotton Manufacturers 
Association, Atlanta, Ga., for protestants. 

By application dated July 14, 1937, filed by Agent E. H. Dulaney in 
behalf of rail carriers operating intrastate within North Carolina, 
authority is sought to increase classification ratings on Warp, cotton; 
Wicking, NOIBN.; Yarn, cotton, NOIBN.; and Yarn, Jute, from 5th 
class to 4th class. The proposed revision was opposed and under au- 
thority of Section 16, Chapter 134 of the Public Laws of 1933, the 
matter was heard on September 15, 1937. 

In Cotton, Woolen and Knitting Factory Products, I & S 3636, 
reported at 211 ICC 692, hereinafter called the Cotton Goods Case, 
the Interstate Commerce Commission rendered its decision prescribing 
rates on these articles as well as many others, within the South and 
between the South, on the one hand, and official and western terri- 
tories, on the other hand. The rates prescribed, as well as certain 
others, labeled truck competitive rates, were published in the Excep- 
tions to Southern Classification, effective June 8, 1937, as percentages 
of first-class rates. On August 20, 1937, the fifth class ratings in the 
Southern Classification were increased to 4th class on interstate traffic 
which became effective without suspension. 

Applicants contend that the proposed ratings, if approved, will 
not affect the actual going rates which are those published in the 
Exceptions to Southern Classification and now apply on North Carolina 
intrastate traffic, being 45% of first-class on cotton yarn and cotton 
warp, and 50% of first-class on wicking, N.O.I. B.N. Jute yarn, on 
which 4th class is also proposed, and which will be the only commodity 
affected by the proposal, is not included in the descriptions published 
in the Exceptions to Southern Classification. However, it is contended 
that there is no movement of the latter between points in this State. 

The ratings here proposed, except on jute yarn, in carloads, on 
which there will be no difference, are lower than the ratings in both 
official and western territories. 

Applicants further state that 5th class on yarn, any quantity, is 
distinctly subnormal and that same was advanced to fourth class, 
being the rating applicable on cotton piece goods and mop yarn. In 
the Cotton Goods Case, supra, the Interstate Commerce Commission 
found 50% of first-class not to be unreasonable on cotton piece goods 
and this rating has likewise been published in the Exceptions to 
Southern Classification even though 4th class rating (55% of Ist-class) 
remains undisturbed in the Southern Classification. 

Witness for applicants testified, from his recollection, that there is 
no article in the Southern Classification having comparable classifi- 



Decisions and Adjustments of Complaints 237 

cation characteristics with cotton yarn or cotton warp rated as low as 
the latter; that a striking illustration of the unduly low classification 
basis on same is furnished by comparing them with the transportation 
characteristics of the important groups of food stuffs embraced in the 
terms of "Canned or preserved vegetables," "Canned or preserved 
fruits," "Canned or preserved fish" and "Pickles." The lowest L.C.L. 
rating on these groups is fourth class, or 55% of first-class. Values 
range from 3c to about 15c per pound, the great preponderance, how- 
ever, being 11 cents and less. For example, the witness further testi- 
fied, canned corn is today valued at 5c to lie per pound; squash, 3c 
to 4c per pound; lima beans, 4c to 10c; string beans, 4c to 8c, etc. 
Considering the weight density, canned goods range from 45 to 50 
pounds per cubic foot. Due to the various types of packages, bales and 
boxes in which yarn is shipped it has been impossible to arrive at its 
weight density but it may be fairly assumed that it is substantially less 
than the weight density of cotton piece goods. The weight per cubic 
foot of 40 (2s) combed peeler mercerized yarn on cones, corresponding' 
substantially to size of standard case of cotton piece goods, the weight 
is 19 pounds per cubic foot. 

The market on yarns, as taken from The New York Journal of 
Commerce, issue of August 3, 1937, is shown below: 

Southern Single Skeins and Single Warps: 

10s 241/2 cents per pound 

40s 39 cents per pound 

Southern two-ply Chair Warp: 

10s 25 cents per pound 

40s 39 cents per pound 

Southern Frame Cones: 

10s 24:V2 cents per pound 

40s 38y2 cents per pound 

Single Combed Peeler: 

12s 32 cents per pound 

40s 44 cents per pound 

80s 86 cents per pound 

Ply Combed Peeler: 

10s & 12s 361/2 cents per pound 

40s 49 cents per pound 

60s 59 cents per pound 

80s 78 cents per pound 

In justification of the proposed rating on yarn, prices thereon were 
compared with prices on woven cotton goods as taken from the report 
of the United States Department of Commerce, April 9, 1937 giving 
preliminary figures for 1935. On such the price was 37 cents per pound 
compared with 34 cents per pound on yarn, or a difference of 3 cents. 

It is indicated that cotton wicking, N.O.I.B.N., is an item of prac- 
tically no importance. Doubtless, there is very little movement between 
points in North Carolina. There is little or no specific information as 
to present values, shipping weights, etc. It consists of low count yarn, 
strands of three or more, twisted, and used in torches, flares and the 
like, as wicking. It resembles in appearance the lower grade mop yarn. 
As previously stated this commodity is rated at 50% of first-class in 
the Exceptions to the Southern Classification, being 5 percentage points 
lower than proposed 4th class rating. 



238 N. C. Utilities Commission 

Jute Yarn is the raw material for the manufacture of twine. The 
rating on Twine, L. C. L., in all three classifications, is 3rd class. It 
appears that none of this material is manufactured in the South and it 
is obvious that there is no movement between points in North Caro- 
lina. Jute Yarn is produced at points in Pennsylvania, Massachusetts, 
etc. In addition to its being used for the manufacture of twine it is also 
used as backing or base for rugs or carpets. Inasmuch as there was no 
opposition to the proposed increased rating on jute yarn, and an appar- 
ent non-movement of it in intrastate commerce, no further discussion 
of it will here be given. 

Protestants confined their opposition to ratings on cotton yarn. No 
testimony was offered by them with respect to Cotton Warp, Wicking, 
N.O. I.B.N, and Jute Yarn. 

North Carolina, with 234 mills, is the most important cotton yarn 
manufacturing State in the south. The protestants' witness testified 
that the proposed change in the classification rating, where the rates 
are governed by it or to any extent may hereafter be governed by 
it, would represent an increase of approximately 22%, or the differ- 
ence between 45% of first-class and 55%. In the Cotton Goods Case, 
SUPRA, the Interstate Commerce Commission found that the first-class 
rating on cotton piece goods in western classification was unreasonable 
and should be reduced to third class, which is reasonable. Otherwise, 
it was found, the respective classification bases are not unlawful. It 
is therefore the position of protestants that 5th class rating on cotton 
yarn has been found reasonable by the Interstate Commerce Commis- 
sion and that this rating should be continued in the classification proper 
for whatever use may be made of same therein. It is contended that 
if the classification means anything, and on cross examination appli- 
cants' witness stated that it is their position that the ratings in the 
classification are reasonable, which, in the case of cotton yarn, has 
been found to be not unlawful by the Interstate Commerce Commis- 
sion, the ratings ought to be reasonable; that if it doesn't mean any- 
thing no interest would be manifested in it. 

The Cotton Goods Case has been reopened by the Interstate Com- 
merce Commission and it is the belief of protestants that to increase 
the intrastate rating on cotton yarn as proposed would be prejudicial 
to the interest of southern shippers in the reopened case. It is thought 
that the continuation of the present rating would enable protestants 
to show that the actual rates within the south on some of the products 
involved therein have been maintained on a level with official territory 
rates and not recognized as unreasonable, nor authorized increased by 
any State Commission or acquiesced in by southern shippers. 

In Docket No. 910 North Carolina intrastate class rates were 
ordered reduced, effective August 15, 1937, the amount of reduction 
being 7.8 per cent. The percentages that lower class rates bear to first- 
class rates remain unchanged. At the present time there are mileage 
commodity rates on cotton and knitting factory products including 
cotton yarn, cotton warp, and wicking, between points located on 
all rail carriers within North Carolina which are somewhat lower 
than class rates applicable thereon. In Docket No. 1048 consideration 



Decisions and Adjustments of Complaints 239 

was given to the question of cancelling these mileage commodity rates 
and applying percentages of the first-class rates, in effect prior to 
August 15, 1937, being, in part, the same percentages prescribed by 
the Interstate Commerce Commission on interstate traffic, and pub- 
lished in Note B of Exceptions to the Southern Classification issued by 
Agent E. H. Dulaney. The new class rates, however, are governed by 
these exceptions. The application there was denied without prejudice 
to the filing of reasonable rates based on percentages of Docket No. 910 
first-class on various commodities, including the ones under review, 
viz: 

Description 1 — 471/2% of Docket No. 910 first-class 
Description 2 — 45 % of Docket No. 910 first-class 
Description 3 — 47^/2 % of Docket No. 910 first-class plus 

5c per cwt. 
Description 4 — (Except knit goods and underwear described 

therein) 70% of Docket No. 910 first-class. 
Knit Goods and Underwear as described in Description No. 4 — 

471/2 % of Docket No. 910 first-class plus 10c per 

cwt. 

The revision from 5th to 4th class on the commodities in issue was 
made effective on interstate traffic on August 20, 1937. They were not 
suspended by the Interstate Commerce Commission even though it 
found 5th class not to be unlawful. 

Inasmuch as the ratings now published in the Exceptions to 
Southern Classification are not before me at this time, and ratings on 
these commodities, except jute yarn, having been considered and 
passed on in Docket No. 1048, it is my opinion that no change will 
result in the actual rates by increasing the classification rating of 5th 
class on cotton yarn^ cotton warp, wicking, N.O.I.B.N., and jute yarn, 
to the interstate basis of 4th class. The approval of this application is 
not to be construed as authorizing ratings found to be reasonable in 
Docket No. 1048 to be increased to the classification basis. Before those 
rates or ratings may be increased petition must be duly filed, as re- 
quired by law. 

It is therefore ordered, That application of Agent E. H. Dulaney 
for authority to revise classification ratings on Cotton Warp, Wicking, 
N.O.I.B.N., Cotton Yarn, N.O.I.B.N., and Jute Yarn, as described in 
Supplement No. 11 to Southern Classification No. 54, be, and the same 
is hereby, approved effective on not less than fifteen days' notice to 
the public and this Commission. 

This 10th day of December, 1937. 



Stanley Winborne, 

Commissioner. 



By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 898. 



240 N. C. Utilities Commission 

IN THE MATTER OF INCREASE IN FREIGHT RATES AND 
CHARGES. (S.F.A. APPLICATION NO. 141, DATED JUNE 14, 
1937; AND AMENDMENT THERETO DATED SEPTEMBER 28, 
1937; SUPPLEMENTAL PETITION DATED OCTOBER 29, 1937, 
AND FIRST, SECOND AND THIRD AMENDMENTS THERETO 
DATED NOVEMBER 1, NOVEMBER 4, AND NOVEMBER 6, 1937). 

Order 
Appearances: 

R. G. Hodgkin, for Atlantic Coast Line Railroad Company 
Charles Clark, and Carl W. Dilli; for Southern Railway 
H. H. Belton, for Seaboard Air Line Railway 
J. Chas. Phelps, for N. C. State Highway and Public Works 
Commission. 

These applications, petitions, and amendments thereto, filed in 
behalf of North Carolina railroads through Southern Freight Associa- 
tion by its Chairman, J. G. Kerr, was heard by me in my office on 
November 16, 1937. 

On October 19, 1937, the Interstate Commerce Commission ren- 
dered its decision (223 I.C.C. 657) on similar petitions dated October 
23, and November 21, 1936, except that as to commodities included in 
North Carolina Intrastate Application dated June 14, 1937. Those 
commodities were not covered by outstanding orders and the carriers 
proceeded to publish the increases shown therein which became effec- 
tive, except as to a very few which were suspended. 

The original application dated June 14, 1937, was permitted, at 
the hearing, to be amended due to some changes in the ratings on a few 
commodities. 

The supplemental petition dated October 29, 1937, consisted of 
two parts, viz: Exhibit "A" covered by Public Announcement No. 3, 
and Exhibit "B" covered by Public Announcement No. 4. Petitioners 
were not prepared to offer any evidence on the latter as no definite 
action had been taken with respect thereto, although it was assumed 
that those increases would become effective on interstate traffic on or 
about December 20, 1937. As to this part it was decided appropriate to 
have another hearing. The proposed increases in the above Petition 
covered by Public Announcement No. 3 (Exhibit "A") which became 
effective on interstate traffic November 15, 1937, and Amendment No. 
3 thereto dated November 6, 1937, together with the original applica- 
tion dated June 14, 1937, and amendment thereto dated September 28, 
1937, will only be considered at this time. This, of course, defers to a 
later date hearing and consideration of Exhibit "B" of Public An- 
nouncement No. 4, Amendments 1, 2, and 4 (the latter being dated 
November 16, 1937). 

It was briefly stated by counsel that petitioners are confronted with 
a serious situation. Of recent years the taxes, which were reduced 
somewhat during the years of depression, have steadily increased and 
to those taxes have been added certain new taxes, the Social Security, 
and the Railroad Retirement. These latter two additions represent 
increases of about 15%. Wages have increased, the last of which 
represent approximately 4%. It was also testified that the margin 



Decisions and Adjustments of Complaints 241 

between income and outgo has been squeezed so thin as to impair the 
future of the railroads as self-sufficient, tax-paying and economical 
enterprises. 

The average revenue received by the railroads of the United States 
for handling a car of freight one mile, it was testified, declined from 
12.75 mills in 1921, to 9.74 mills in 1936, and to 9.36 mills in the first 
six months of 1937. Simultaneously with the decline in earnings, 
expenses have mounted. 

The following figures show the rate of return on property invest- 
ment of carriers in the Southern Region for the years 1931 to 1936, 

i^^l^si^e- Rate of 

Year Return 

1931 1.34% 

1932 0.79 

1933 1.85 

1934 1.71 

1935 1.56 

1936 2.52 

The rate of return in 1936 was greater than in the five preceding 
years. However, it was contended, this is far short of a reasonable 
return. During this period the emergency charges were applied, except 
on North Carolina intrastate traffic, those charges were discontinued 
on June 30, 1936. The rate of return of 2.52 7o for 1936 did not take 
into account fixed charges which, when considered, completely wiped 
out same. 

The nationwide income and operating expenses were not broken 
down according to states, and it is not possible to arrive at any figures 
which might show the condition of North Carolina Railroads insofar 
as intrastate commerce is concerned. 

The North Carolina Highway and Public Works Commission was 
the only protestant represented in opposition to the proposed increases, 
however, no testimony was offered due to the fact that it had no 
direct interest in the commodities involved in these proceedings. 

It has never been my contention that North Carolina should have 
preferential rates. Conversely, our rates should be no higher than 
rates north of us to which the preponderance of North Carolina com- 
merce is shipped. In Docket No. 910, Class Rates for Intrastate 
Application Within North Carolina, decided June 16, 1937, it was 
found that to equalize out intrastate class rates, as far as it was 
possible to do so, with interstate rates between Virginia, on the one 
hand, and North Carolina, on the other, a reduction of 7.8% in the 
present rates would be necessary. Therefore, the 13494 Class rates, 
which became effective on North Carolina intrastate traffic on June 
10, 1930, were ordered reduced 7.8% effective August 15, 1937. 

The increases herein proposed have been applied on interstate 
traffic throughout Southern and Official territories and in my opinion 
they will not raise our intrastate rates, when increased by the amounts 
requested, above the level of interstate rates. 

It is therefore ordered. That Southern Freight Association Appli- 
cation No. 141 dated June 14, 1937, and Amendment thereto dated 



242 N. C. Utilities Commission 

September 28, 1937; Exhibit "A" of Supplemental Petition dated 
October 29, 1937, and Third Amendment thereto, dated November 6, 
1937, be, and the same are hereby, granted. 

It is further ordered, That where increases herein authorized 
carry an expiration date on interstate commerce, said expiration 
dates shall be observed on intrastate commerce. 

It is further ordered. That orders now outstanding be and they 
are hereby modified and amended to include increases herein author- 
ized; 

It is further ordered, That all of said increases be and they are 
hereby authorized to become effective on not less than fifteen days' 
notice to this Commission and the public. 

This 22nd day of November, 1937. 

Stanley Winborne, 

Commissioner. 

By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 191. 

IN THE MATTERS OF INCREASES IN FREIGHT RATES AND 
CHARGES (SOUTHERN FREIGHT ASSOCIATION SUPPLE- 
MENTAL PETITION DATED OCTOBER 29, 1937, EXHIBIT B 
THEREOF COVERED BY PUBLICATION ANNOUNCEMENT NO. 
4, AND AMENDMENTS 1, 2, 4, 5, 6, 7, AND 9 THERETO. 

Docket No. 191 

APPLICATIONS OF E. H. DULANEY TO REVISE RATINGS ON 
ARTICLES LISTED IN SUPPLEMENTS 19 AND 22 TO SOUTHERN 
CLASSIFICATION NO. 54 (APPLICATIONS NOS. 163 AND 166). 

Docket No. 898 
INCREASES IN RAIL FREIGHT RATES AND CHARGES, 1938. 

Docket No. 1239 
Appearances : 

W. N. McGehee, Charles Clark, Carl W. Dilli, R. G. Hodgkin, 
H. V. Borjes, H. H. Belton, C. H. Ware, A. L. Thompson, 
and S. P. Collier, for petitioners; 
L. F. Owen, N. B. Correll, W. S. Creighton, Charles Ross, J. 
Chas. Phelps, I. M. Porter, G. W. Leyhe, G. S. Quillin, W. 
O. Huske, Chas. W. Strickland, Lionel Weil, F. M. Brid- 
gers, and C. G. Crockett, for protestants. 

Section 16, Chapter 134 of the Public Laws of 1933, as amended by 
Chapter 165 of the Public Laws of 1937 provides: 

<<* * * £^j^(j jrjQ corporation, association, partnership, or indi- 
vidual doing business in the State of North Carolina as a public- 
service corporation, or any corporation herein designated, shall 
be allowed to increase its rate and charge for service or change its 
classification in any manner whatsoever except upon petition duly 
filed with the Utilities Commission and inquiry held thereon and 
final determination of the reasonableness and necessity of any 
such increase or change in classification or service; Provided that 
in individual cases not involving increases above the normal rate 
structure, or in individual cases where the proposed increase is 



Decisions and Adjustments of Complaints 243 

deemed justifiable, the Utilities Commissioner may approve, with- 
out hearing, the petitions of carriers where the rate and/or charge 
involves transportation exclusively by rail; and provided further, 
that nothing herein shall be construed to prevent any public- 
service corporation from reducing its rates, either directly or by 
change in classification." 

The petitions hereinafter described and discussed were duly filed 
with this Commission pusuant to the above section, and hearings held 
thereon. 

On October 23, and November 21, 1936, the rail carriers petitioned 
the Interstate Commerce Commission for authority to increase rates 
on heavy basis commodities, in carloads, and on shoe findings and 
games and toys, in less than carloads. These petitions were assigned 
Docket No. Ex Parte 115. Subsequently, certain commodities enumer- 
ated therein not covered by outstanding orders of that Commission 
were withdrawn from the petitions and rates thereon increased during 
the early part of 1937. As to those commodities withdrawn from their 
petitions to the Interstate Commerce Commission the carriers, on June 
14, 1937, as amended September 26, 1937, hereinafter called the origi- 
nal petition, through their Agent, J. G. Kerr, Chairman, Southern 
Freight Association, petitioned this Commission for authority to 
advance North Carolina intrastate rates a like amount which were 
generally 10% subject to various maximum increases. 

On October 19, 1937, in General Commodity Rate Increases, 
1937, 223 I.C.C. 657, the Interstate Commerce Commission rendered its 
decision on the petitions of October 23, and November 21, 1936, and 
found justified, with certain exceptions, the increased rates sought. 

On October 29, 1937, the rail carriers petitioned this Commission 
for authority to increase intrastate rates in the same amounts and to 
the same extent found justified by the Interstate Commerce Commis- 
sion in General Commodity Rate Increases, 1937, supra, on inter- 
state traffic. This will hereinafter be referred to as the supplemental 
petition, and will include amendments thereto enumerated in the 
caption of this order. 

These petitions were docketed for hearing in Raleigh on November 
16, 1937, at which the carriers stated they were not prepared to offer 
any evidence on Exhibit "B" commodities covered by Publication 
Announcement No. 4, which will be referred to as Part 2, included in 
the Supplemental Petition as no definite action had at that time been 
taken by them with respect thereto. Therefore, only the original peti- 
tion and Exhibit "A" of Publication Announcement No. 3, the first part 
of the Supplemental Petition, were heard on the above date. 

Due to some changes made in the ratings on a few commodities, the 
original petition was allowed to be amended at the hearing. 

An opinion and order was rendered on November 22, 1937, 
authorizing the increases therein sought which became effective on 
December 13, 1937. In effect they included the same commodities on 
which interstate increases were published on November 15, 1937, as 
well as those in the original petition dated June 14, 1937 as amended 
September 28, 1937 and at the hearing. 



244 N. C. Utilities Commission 

Part 2 of the Supplemental Petition was heard on February 8, 
1938, but no opinion or order has as yet been issued. Generally, these 
involved rates on commodities which were increased on interstate 
traffic on or after December 20, 1937. 

Except as to shoe findings and games and toys, no increases were 
proposed or authorized on commodities, less than carloads, nor on 
class rates as such, involved in either of these petitions. 

Immediately following the decision of the Interstate Commerce 
Commission in General Commodity Rate Increases, 1937, the rail 
carriers throughout the nation considered increasing all freight rates 
and charges generally 15% and on November 5, 1937, petitioned the 
Interstate Commerce Commission for authority so to do, subject to 
maximum increases on bituminous coal and coke, anthracite coal, 
lumber, sugar, and fruits and vegetables. An investigation under Ex 
Parte 123 was instituted by that Commission on November 8, and 
after many hearings and oral argument thereon, an opinion was ren- 
dered on March 8, 1938, Fifteen Percent Case, 1937-1938, reported 
at 226 I.C.C. 41, authorizing in part only the amounts of increases 
sought. For ready reference the finding, in part, is here quoted: 
(226 I.C.C. 41, 138-139). 

"We therefore find and conclude that the proposals before us 
have not been justified, as a whole, but have been justified to the 
following extent: 

"All existing rates and charges, including those for accessorial 
services other than protective service against heat or cold, upon 
the date of this decision, including those found or prescribed by 
us as reasonable and not yet effective, may be increased, and as 
increased may be maintained (subject to application of the rule of 
fractions suggested upon the hearing), by 10 per cent except the 
rates on products of agriculture other than tropical fruits; except 
the rates on animals and products and the products thereof and 
articles taking the same rates, horses and mules not being included 
in this exception; and except lumber, shingles, and lath, and arti- 
cles taking lumber rates; and except the rates on cottonseed oil 
and vegetable oils, n.o.s., other than linseed oil; as to all of which 
excepted groups of commodities the increase in rates may be 5 
per cent; and except anthracite, which may be increased 10 cents 
per ton of 2,000 pounds; and except bituminous coal, lignite, coke, 
and iron ore, which commodities justly and reasonably should 
bear no further increases than those already imposed pursuant 
to authority granted in the case last cited; all import rates may 
be increased 10 per cent, but not to exceed the contemporaneous 
domestic rates increased as herein provided. But in making such 
increases, all effective increases accomplished under the authority 
of the decision last cited, or in the transcontinental rates which 
were increased in connection therewith as before recited, and 
in the cotton rates and in those on other commodities effective 
early in 1937, as above described, shall be taken into account and 
considered as part of the increases here authorized, so that the 
above-mentioned percentage increases shall not be made cumula- 
tive thereon. The increases authorized may not reasonably exceed 
the specific maxima originally proposed by the applicants to be 
applied upon lumber, sugar, fruits, and vegetables. Such rates and 
charges, as those upon fresh milk and cream, and those for pro- 
tective service, which applicants in their petition or on the hearing 
disclaimed intention to increase, are not included within this 
authorization and increases on them are not found to have been 



Decisions and Adjustments of Complaints 245 

justified. As increased as above specified, to the extent indicated, 
but only to that extent, the resulting general basis of rates and 
charges of the carriers described will be just and reasonable." 

These interstate increases were published to become effective on 
March 28, 1938. On March 12, 1938, all North Carolina rail carriers 
petitioned this Commission for authority to increase intrastate rates 
in the same amounts and to the same extent authorized by the Inter- 
state Commerce Commission in the Fifteen Per Cent Case, 1937-1938, 
supra. This petition, which will be referred to as the General Petition, 
was heard on March 25, 1938. 

These petitions, viz: original, supplemental, and general, are based 
on additional revenue needs of the petitioners and may collectively be 
termed revenue petitions. 

It is our opinion that these cases are interrelated and necessarily 
must be considered jointly in view of the fact that the findings of the 
Interstate Commerce Commission considered the increases in its Ex 
Parte 115 a part and parcel of Ex Parte 123, reference being made to 
the former in many instances in the latter. 

Dockets 191 and 898 

Part 1 of the Supplemental Petition having been disposed of and 
granted in our order of November 22, 1937, and the rates having been 
published to become effective on December 13, 1937, with the excep- 
tion of rates on lime, carload, as published in Agent Roy Pope's North 
Carolina Intrastate Traffic, F. T. No. 629-A, I.C.C. 1740 (C. R. Young 
Series), which became effective on April 17, 1938, only part 2 of said 
Supplemental Petition need be discussed. It is believed, since the in- 
creases proposed are identical to those on interstate traffic effective 
December 20, 1937, every one is familiar with the manner in or method 
by which the rates on the commodities involved, including, generally, 
basic commodities, are advanced. 

With this in mind and in the interest of time discussion thereof 
will be dispensed with. It is unnecessary here to comment on any 
statistical data involving transportation costs, taxes, etc. as this matter 
will be outlined later herein under Docket No. 1239 covering the 
general petition. 

The North Carolina State Highway and Public Works Commission 
opposed increases in rates on limestone, crushed stone, sand, gravel, 
etc., listed in Appendix "Y", Part 2 of Supplemental Petition, of 5 
cents per ton where the rate is over 60 cents to and including $1.00, 
and 10 cents where the rate is in excess of $1.00 per ton, for the reason 
that another petition was before the Interstate Commerce Commission 
seeking an additional 15% increase and, it was contended, the present 
rates should remain unchanged until an opinion is rendered in the said 
15% case. It was also argued that the increases proposed would result 
in the publication by carriers of a larger number of competitive rates 
to meet local or truck competition and, too, the opening of local 
quarries. 

The Highway and Public Works Commission last year purchased 
from commercial producers approximately 380,000 tons of sand, stone 



246 N. C. Utilities Commission 

and gravel for maintenance purposes, 306,000 or 8OI/2 % of which 
moved by rail. 74,000 tons or 191/2% moved by truck. 15% of its 
purchases were placed with firms in other states representing 57,000 
tons, of which 55,000 tons moved by rail. That Commission has in 
operation a large number of crushers and in two divisions in the 
western section of the State, these crushers produced 580,000 tons of 
stone all of which was delivered to the job by trucks. In one of these 
divisions 331,000 tons of sand and 60,000 tons of gravel were pumped 
from local creeks. These operations amounted to approximately 150% 
of the department's commercial purchases. It is contended that if the 
increases proposed are authorized local crushing of stone and pumping 
of sand and gravel will very likely be augmented which would have 
a material effect on the movement of these commodities by rail. 

The contracts between the Highway and Public Works Commission 
and the contractors contain a clause to the effect that if freight rates 
are increased before the completion of a project for which the contract 
was made, the said increase is paid by the department to the con- 
tractor. The same clause provides that the department will receive 
the benefit of rate reductions, other than those reduced to meet truck 
competition. Therefore, if the proposed increases are granted, the 
Highway Commission will forfeit or lose many thousands of dollars on 
work now in progress and not yet completed. 

Armour Fertilizer Company, which owns and operates two fer- 
tilizer factories within North Carolina, manufactures and ships mixed 
fertilizers and sulphuric acid, intrastate. One of their plants is located 
at Wilmington (Navassa) and the other at Greensboro. Crude sulphur 
is shipped from Wilmington to Greensboro in bulk in quantities of 
approximately 9,000 gross tons annually. By means of expensive equip- 
ment at the latter point sulphuric acid is manufactured which is used 
in acidulating phosphate rock for the manufacture of superphosphate. 
Some of the acid is sold to other fertilizer manufacturers at Greens- 
boro and other points in North Carolina. In that respect they are in 
competition with producers of sulphuric acid who ship from points 
located in other states. The Greensboro plant was built when manu- 
facturing costs and rates were lower. Its construction, the witness 
testified, would not have been contemplated under present conditions. 
Being located on the Atlantic and Yadkin Railway, at one time part 
of the Southern Railway System, it has had to pay a switching charge 
of $2.25 per car on every carload of inbound and outbound fertilizer 
and fertilizer material from and to points defined as non-competitive, 
since the latter line relinquished the former road. 

It is stated that with rising costs and rates it is becoming more 
difficult to operate the Greensboro plant. It has established itself as a 
Greensboro industry and endeavors to do its best in maintaining the 
industrial welfare of that community. In 1937 it manufactured over 
65,000 net tons of fertilizer and superphosphate. 

The present rate on sulphur, which is included in the fertilizer 
descriptions, from Wilmington to Greensboro is $3.05 per net ton. 
The carriers propose the removal of this description from the fertilizer 
list and apply in lieu thereof 18 1/2 % of first-class rates, which would, 



Decisions and Adjustments of Complaints 247 

it was testified, increase the above rate to $3.60 per net ton, or an 
increase of 55 cents per ton. This would increase Armour and Com- 
pany's annual freight bill approximately $5,500. Should the removal 
of sulphur from the fertilizer list be granted and ISVz % of first-class 
be applied, the rate would become $3.30 instead of $3.60, or an increase 
of only 25 cents per ton. The rate of $3.30 is based on 18 Vz % of 
Docket No. 910 First-Class rate, prescribed in our order of June 16, 
1937. It is proposed to increase fertilizer rates under Ex Parte 123, 
covered by the general petition hereinafter discussed, 10%, which 
would result in the rate on such from Wilmington to Greensboro to be 
$3,351/2 per ton and as no further increases are proposed on sulphur 
the fertilizer rate would become 5V2 cents per ton higher than on 
sulphur. 

This protestant also objected to the proposed increases on sand, 
when loaded in box cars, which is used as a filler in the manufacture 
of fertilizer. There were no figures submitted with respect thereto. 

Ashcraft-Wilkinson Company of Atlanta, Ga., doing a fertilizer 
brokerage business, could not be represented and authorized the 
Armour & Company witness to speak in its behalf. 

The North Carolina Granite Corporation of Mount Airy, N. C, for 
the first time in its history, secured a contract in October, 1937, from 
the State Government of North Carolina, to furnish granite for con- 
struction of an office building in Raleigh. At that time they had no 
knowledge of a proposal to increase rates thereon and the contract was 
secured based on the existing rates at that time. It was necessary, in 
order to successfully interest the State officials in granite, to make a 
very close price and this company was successful in obtaining the 
contract. An increase in rates on this movement at this time, it is 
stated, would result in a loss to that company on this project. 

Docket No. 1239 

This docket covers petition of North Carolina rail carriers dated 
March 12, 1938, and filed with this Commission on March 14, 1938, 
hereinbefore termed the general petition. 

Petitioners' counsel stated that they were disappointed at the deci- 
sion received at the hands of the Interstate Commerce Commission 
which amounted, perhaps, to a third of the revenue they sought, 
assuming that all the increases granted by that Commission are 
approved by all the State Commissions without exception. 

We have already reviewed Part 2 of the Supplemental Petition 
heard on February 8, 1938, seeking to increase rates identical to those 
authorized by the Interstate Commerce Commission in General Com- 
modity Rate Increases, 1937, supra. It is proposed that those increases 
be considered as minima if Part 2 of the Supplemental petition and 
the General petition are granted, as there are certain instances where 
the increases previously authorized and those covered by Part 2 of 
the said Supplemental Petition will result in rates slightly higher than 
if the straight 5 and 10 per cent increase basis which have been held 
as maxima by the Interstate Commerce Commission in Ex Parte No. 
123 and sought in the general petition to this Commission, are author- 
ized. 



248 N. C. Utilities Commission 

The interstate rates were published effective March 28, 1938 and, 
generally, tariffs refer to a so-called Master Tariff. 

A number of rate exhibits were filed showing the manner in which 
rates will be published, considering increases authorized in our order 
of November 22, 1937, Docket No. 191, covering the original petition 
and Part 1 of the supplemental petition, and also Part 2 of the said 
supplemental petition, if granted. It is believed that reference to Sup- 
plement No. 3 to Agent E. H. Dulaney's Exceptions to Southern Classi- 
fication, I.C.C. No. 72, the Master Tariff, and master supplements to 
various rate tariffs will more clearly show the manner in which it is 
proposed to publish intrastate rates. The following rules for the dis- 
position of fractions were used in computing the interstate increases 
and in restoring percentage relationships of class and column rates to 
first-class and now sought to be used in computing intrastate rates; 

'Tor rates increased from present rates not over 4.65 cents in 
the 10% table or 4.88 cents in the 5% table, fractions of less than 
Vs of a cent will be dropped; fractions of Vs of a cent or greater 
but less than % of a cent will be stated as 1/4 of a cent; fractions 
of % of a cent or greater, but less than % of a cent will be stated 
as 1/2 cent; fractions greater than % of a cent but less than % 
of a cent will be stated as % of a cent; and fractions of % of a 
cent or greater will be increased to the next whole cent. 

"For rates increased from present rates higher than 4.65 cents 
in the 10% table or 4.88 cents in the 5% table, but not higher 
than 4.77 cents in the 10% table, and 4.99 cents in the 5% table, 
fractions of less than Vs of a cent will be dropped; and fractions 
of Vs of a cent but less than 1/4 of a cent will be stated as Vz cent. 

"For rates increased from present rates higher than 4.77 cents 
in the 10% table or 4.99 cents in the 5% table, but not higher 
than 9.31 cents in the 10% table, or 9.76 cents in the 5% table, 
fractions of less than 1/4 of a cent will be dropped; fractions of 
1/4 of a cent or greater, but less than % of a cent will be stated as 
one-half cent; and fractions of % of a cent or greater will be 
increased to the next whole cent. 

"For rates increased from present rates higher than 9.31 cents 
in the 10% table or 9.76 cents in the 5% table, but not higher than 
9.54 cents in the 10% table or 9.99 cents in the 5% table, fractions 
of less than 1/4 of a cent will be dropped, and fractions of V4 of a 
cent but less than V2 of a cent will be stated as a whole. 

"For rates increased from present rates higher than 9.54 cents 
in the 10% table, or 9.99 cents in the 5% table, fractions of less 
than 1/2 cent will be dropped, and fractions of V2 cent or greater 
will be increased to the next whole cent." 

Petitioners' statistician testified that the revenue situation of the 
railroads today is "a matter of such common knowledge that it scarcely 
seems necessary to take up much time to place it before the Com- 
mission." Certain statistical data, however, were offered showing 
revenue needs of southern carriers and the reasons therefor; how 
efficiency has been increased in all ways open to management, but how 
increases in labor and material costs, and taxes, coupled with declining 
volume of traffic, have been more than the economies accomplished by 
efficiency. 

The following table shows operating revenues and expenses of 
Class I railways in the Southern Region: 



Decisions and Adjustments of Complaints 249 

Increase 1937 
1937 1936 over 1936 

Total Operating Revenues $515,490,969 $500,904,644 $15,586,325 

Total Operating Expenses 390,555,652 371,241,331 19,314,321 

Operating Revenues in October, November and December, 1937, 
were $2,409,888, $4,232,386, and $6,800,846, respectively, less than for 
the same months in 1936. Operating expenses in each month of the 
year of 1937, except December, were greater than in 1936. 

The month of August, 1937, it was testified, was the very month in 
which the "bottom dropped out of business" and in which an increase 
was granted to the so-called non-operating brotherhoods approximating 
$1,100,000 per month. In October that increase in pay roll expenses 
was supplemented by $396,000 per month to cover increases allowed 
in the pay of trainmen and enginemen. These pay roll increases, 
coupled with sharply declining business is the reason, it is stated, why 
the decrease in expenses is not more in line with the decrease in 
revenues. Somewhat over a million and a half dollars decrease in 
expenses in December were made as a result of sharp curtailment of 
forces. 

The Southern Railway System, operating in every State east of the 
Mississippi and south of the Ohio and Potomac Rivers, was used as a 
representative southern line in the compilation of much of petitioners' 
statistical data. The Southern Railway, during 1937, handled 1,473,458 
cars of revenue freight, compared with 1,420,956 cars in 1936, or an 
increase of 91,702 cars. Decreases of 5,307, 12,130 and 21,765 cars 
occurred in the months of October, November and December, 1937, 
under the same months in 1936. For the first eleven weeks in 1938, 
271,404 cars of revenue freight were handled by this line, compared 
with 338,153 for the same period in 1937, and 296,174 in the year of 
1936. This was a decrease of 66,749 cars under 1937 and 24,770 cars 
under 1936. 

The net income, after fixed charges, of the Southern Railway 
Company for January, 1938, and January, 1937, was as follows: 

1938 1937 Increase Decrease 

Total Operating Revenues $6,965,715 $8,138,015 $1,167,300 

Freight 5,488,438 6,465,724 977,286 

Passenger 872,956 954,542 81,586 

Mail 324,150 310,316 $13,834 

Express 65,253 129,699 64,446 

All other revenues 214,918 272,734 57,816 

Total Operating Expenses 5,672,299 5,867,437 195,138 

Net Operating Revenues.. 1,293,416 2,265,578 972,168 
Net Rwy. Operating 

Income 278,423 1,349,956 1,071,533 

Other Income 121,559 120,742 817 

Total Income 399,982 1,470,698 1,070,716 

Total Deductions (fixed 

charges, etc.) 1,398,451 1,401,943 7,492 

Net Income (d) 994,469 68,755 1,063,224 

(d)— deficit. 

It will be observed that in January, 1937, this line had a net income 
of $68,755 as compared with a deficit of $994,469 in January, 1938, or a 
drop of over a million dollars. 



250 N. C. Utilities Commission 

It is contended that the situation as to every railroad in the South 
is far more serious than had been anticipated at the time carriers 
petitioned the Interstate Commerce Commission in 1937 seeking a 
fifteen per cent increase in rates. 

This witness submitted a statement for the Southern Railway 
Company showing the comparison of revenues and expenses by quar- 
ters for 1937 with the year of 1936. This reveals the amount of the 
added revenue received from increases in revenue previously granted; 
how much was lost by the discontinuance of the emergency rates; an 
increase of $1,200,000 as a result of pay roll increases; $346,000 as a 
result of increased prices of fuel; $886,000 for other materials and 
supplies; $413,000 Unemployment Tax, and $1,246,000, railroad retire- 
ment. The next statement shows this line's net income (after fixed 
charges) for the years of 1937 and 1936: 

Total Operating ^^^^ ^^^^ Increase Decrease 

Revenues $98,435,413 $96,274,498 $2,160,915 

Total Operating 

Expenses 71,811,203 67,416,701 $4,394,502 

Net Operating 

Revenues 26,624,210 28,857,797 2,233,587 

Net Rwy. Operating 

Income 15,112,246 19,298,273 4,186,027 

Other Income 2,594,660 2,225,303 369,357 

Total Income 17,706,906 21,523,576 3,816,670 

Total Deductions 

<' fixed charges, 

etc.) 16,900,985 17,218,650 317,665 

Net Income 805,921 4,304,926 3,499,005 

Petitioners also submitted figures showing the average number of 
employees of the Southern Railway; total hours; total compensation, 
and average compensation per hour from the year of 1910 to and 
including January, 1938, excerpts from which are here shown: 

Average 

Average Compensation 

Number of Total Per Hour 

Year Employees Total Hours Compensation (Cents) 

1910 36,206 112,994,650 $21,391,694 18.93 

1915 36,193 111,331,408 27,190,085 L4.42 

1920 47,952 130,485,600 79,315,785 60.79 

1923 49,629 123,903,196 69,296,310 55.93 

1930 28,752 94,592,107 59,892,822 63.32 

1935 26,353 63,136,416 41,070,945 65.05 

1937 29,674 72,289,176 48,239,579 66.73 

Jan. 1938 26,621 5,359,085 3,824,408 71.36 

The foregoing shows the effect of continuing decline in business 
from the point of view of the number of employees earning a livelihood 
by working for the Southern Railway Company. It is indicated that 
the railroad had no other recourse but to lay off large numbers of 
people. In 1923 this company employed 49,629 people which dropped 
to 29,674 in 1937 and 26,621 in January, 1938. Further lay-offs have 
been necessary since January and the number of persons employed at 
this time is approximately half the number shown for the year of 1923, 
and 10,000 less than were employed in 1910. 



Decisions and Adjustments of Complaints 251 

For all Class I carriers in Southern Region the following will show 
their property investment and operating income account for the years 
of 1929, 1932, 1936 and 1937: 

1929 1932 1936 1937 

Property Invest. Grand Total $3,307,864,418 $3,280,918,992 13,174,452,061 Not available 

Average Miles Represented by In- 
come Account 40,119.78 39,959.01 38,882.00 38,743.00 

Total Operating Revenues 767,324,856 377,781,440 500,904,542 515,590,872 

Total Operating Expenses 579,047,334 312,379,830 371,241,330 390,555,652 

Net Operating Revenues 188,277,522 65,401,610 129,663,212 126,035,220 

Net Operating Railway Income 132,634,562 25,802,843 80,146,408 74,160,008 
Rate of Return on Total 

Property Investment— Per Cent 4.01 0.79 2.52 2.12 

Net Income I 73,059,471 $ (d)48,626,465 $ 10,743,969 I 6,601,152 

(d) deficit. 

Since 1931 there has been a lessening of investment in road and 
equipment by Class I carriers which have been shrinking their property 
as much as possible. This is pointed out by reduction in mileage 
showing that unprofitable branches have been abandoned as fast as 
approval could be secured. 

Railway tax accruals for the years 1936 and 1937 include taxes 
under the requirements of the Social Security Act of 1935 and the 
Railroad Retirement Tax Act of 1935, as follows: 

Social Security Tax R. R. Retirement Tax 

1936 $2,348,213 $4,967,525 

1937 5,028,018 6,745,788 

The gross expenditures for additions and betterments to railway 

property of Class I carriers in Southern Region, are as follows: 

1929 1932 1936 1937 

$57,124,000 $6,118,000 $14,727,000 $60,586,000 

In 1937 Class I roads in Southern Region incurred a debit balance 
in hire of equipment of $10,164,866, a result of not being able to secure 
sufficient new capital to keep the plant up to requirements. 

The record includes net railway operating income or deficit of the 
lines shown below operating in North Carolina: 

Atlantic Coast Line 1929 1932 1936 1937 

(Incl. C&WC) ....$13,334,364 $ 275,891 $ 4,861,481 $ 5,435,493 

Norfolk Southern.. 1,291,973 (d) 270,501 302,538 378,782 

Seaboard Air Line 10,965,725 208,830 2,920,583 4,348,988 

Southern Railway.. 30,030,977 4,406,269 19,298,273 15,112,246 

(d) deficit. 

The following table gives Net Income (or deficit) after fixed 
charges of the same four lines: 
Atlantic Coast Line 

1929 1932 1936 1937 

ACL RR (Incl. 

C&WC) $12,124,868 (d)$6,785,778 $ 2,082,582 $ 2,669,562 

Norfolk Southern 346,890 (d) 1,103,406 (d) 391,645 (d) 323,541 
Seaboard Air Line 1,011,678 (d) 9,528,178 (d)6,097,462 (d)4,630,279 
Southern Railway 18,459,853 (d) 10,955,562 4,304,926 805,921 

(d) deficit. 



252 N. C. Utilities Commission 

In 1929, 2,557.71 miles, or 6.38% of Class I roads in Southern 
Region operated at a loss, the net deficit being $1,980,418. 

In 1932, 39,311.85 miles, or 98.38% operated at a loss, the net deficit 
being $48,923,011. 

In 1936, 10,832.00 miles, or 27.86% operated at a loss, the net deficit 
being $12,022,211. 

In 1937, 12,655.56 miles, or 32.66% operated at a loss, the net deficit 
being $11,747,604. 

In spite of economies accomplished, it is testified, the railroads have 
gone the limit in getting out of the plant all the plant can make and 
can be made to produce, but the saving thus effected is not sufficient to 
overcome the increase in pay roll, materials, etc., which items, coupled 
with the decline in business, have created a situation which the 
maximum of efficiency cannot meet and overcome. In 1910, 27 2/3 
per cent of gross revenues was net. In 1937, only 15 per cent was net. 
In 1910 the Southern Railway paid $3.46 cents out of each dollar of 
gross for taxes and in 1937 twice that much amounted to taxes. The 
total amount of taxes paid by the Southern Railway and taxes per 
dollar of railway operating revenue, are as follows: 

Cents 

1910 $ 2,027,104 3.46 

1915 2,595,828 4.17 

1920 4,702,082 3.08 

1926 10,351,100 6.68 

1930 8,383,821 7.05 

1932 6,022,932 8.25 

1935 5,067,977 6.11 

1937 7,069,947 7.18 

The Southern Railway Company's ratio of net railway operating 
income to Railway operating revenues for the year ended June 30, 
1910, was 27.64 and taxes paid per dollar of railway operating revenue 
were 3.46 cents. Using these as representing Index 100 — for 1937, the 
ratio of net railway operating income to railway operating revenues 
was 15.35 and taxes per dollar of railway operating revenues were 
7.18 cents, representing indexes of 56 and 208. In other words, the 
former declined 44% and the latter increased 108%. 

This line's employees average compensation per hour increased 
from 18.93 cents in 1910 to 66.73 cents in 1937, or an increase of 253%. 
The witness, however, shows that the average receipts per ton mile 
increased from .957 cents in 1910 to 1.124 cents in 1937, an increase 
of 17%. 

Since 1918 the Southern Railway has reduced its coal consumption 
per 1000 gross ton miles freight service from 255 pounds in 1919 to 
146 pounds in 1937, a reduction of 43%, and increased its gross ton 
miles per freight train hour (exclusive of locomotive and tender) from 
12,801 to 21,724, an increase of 70%. 

The Atlantic Coast Line Railroad Company submitted figures with 
respect to its properties and the following table will show data for the 
years of 1929, 1932, 1936 and 1937: 



Decisions and Adjustments of Complaints 253 

Property Investment 1929 1932 1936 1937 

and Supplies. ..$305,592,709 $293,942,527 $290,189,028 $293,470,520 
Rwy. Operating 

Revenues 72,326,101 37,254,965 43,593,212 47,972,180 

Rwy. Operating 

Expenses 53,431,589 32,270,877 33,771,789 36,832,801 

Net Rwy. Oper. 

Income 12,874,207 108,199 4,415,754 4,938,775 

Net Rwy. Oper. 

Income After 

Fixed Charges 7,386,855 (d)5,251,024 (d)674,156 (d) 118,262 
(d) deficit. 

Atlantic Coast Line Railroad Company Properties Tax Accruals 
for 1922, 1936 and 1937 are shown below: 

1922 1936 1937 

Federal taxes $ 640,979 $ 233,294 $ 960,366 

Percentage of all taxes.... 14.99 6.07 19.90 

All other taxes $ 3,634,021 $3,612,925 $ 3,864,634 

Percentage of all taxes... 86.01 93.93 80.10 

Total all taxes $ 4,275,000 $3,846,219 $ 4,825,000 

Net Operating Revenues.. $18,708,024 $9,821,423 $11,139,379 

Taxes per dollar of net 

Operating Revenues 

(cts.) 22.85 39.16 43.31 

This line also submitted that its cost of coal per net ton increased 
from $2.73 in 1932, to $3.53, in 1937, with exception of 1933 when the 
cost was $2.69 per net ton, all of which included off-line revenue. The 
average compensation per employee per annum was as follows: 

1926 $1,421 1932 $1,233 

1927 1,421 1933 1,246 

1928 1,425 1934 1,337 

1929 1,427 1935 1,494 

1930 1,410 1936 1,530 

1931 1,396 1937 1,580 

On February 1, 1938, there were 96 roads in the United States in 
receivership or trusteeship, representing 77,153 miles of the total 
mileage, or 30.51%. Of this number, 10,191 miles were in the southern 
region of which 9,366 are Class I railways, or 24.17% of the South's 
total mileage. As has been shown there are 38,743 miles of Class I 
Railways in the Southern Region. 

These revenue petitions are based on needs for additional revenue 
due to the financial condition of the carriers, caused by declining 
business, increased labor cost, increased taxes, and increased prices of 
materials, supplies, etc. It is the belief of the petitioners that the 
consuming public is able, through its purchasing power, to absorb 
these increases, if granted. This belief is based on the fact, among 
others, that while in recent years the revenue per ton-mile which the 
railroads of the United States have earned on the traffic handled has 
decreased rather than increased, and the prices of commodities in 
general have increased, consequently, it is indicated, petitioners know 
of no reason why the public can pay more for purchases but can't pay 
more for transportation. 



254 N. C. Utilities Commission 

With only two or three exceptions there was very little testimony 
offered by protestants against the proposed increases. Aside from 
cross-examination of petitioners' witnesses, anyone who desired to 
make a statement concerning any phase of the case was permitted 
to do so. 

Counsel for R. J. Reynolds Tobacco Company stated that unmanu- 
factured tobacco, when in hogsheads, generally moving under any 
quantity rates in North Carolina, were proposed to be increased 10% 
when in quantities less than 18,000 pounds, and 5% when in cars of 
18,000 pounds or more which percentage increase was allowed by the 
Interstate Commerce Commission on agricultural products in carloads. 
Due to the issuance of a supplemental order by the Commission on 
March 26, in its Ex Parte 123, authorizing only 5% on unmanufactured 
tobacco, any quantity, the general petition has been amended accord- 
ingly and no further discussion thereon is here necessary. 

There was no outstanding opposition to the proposed increases in 
rates on fertilizer and fertilizer materials. Some reference was made 
to the fact that 10% was sought on these commodities whereas only 
5% was proposed on agricultural products. It was argued that the 
price paid by the farmer for fertilizer must be considered in marketing 
his products and that if any increase is granted it should be no more 
than requested on agricultural products. Representatives of shippers 
of fertilizer and fertilizer materials, however, protested against any 
increase whatever until completion of the Spring movement which 
would doubtless continue through the month of May. 

There were no figures offered to show what the additional trans- 
portation cost would be. The farmer, however, is practically the sole 
consumer of fertilizers and as North Carolina is a great agricultural 
State the additional charges would be considerable and somewhat 
larger under the proposed 10% increase than would be the case on 
many other commodities on which there are many so-called compelled 
or forced rates which, in reality, is not the case with fertilizers. 

Certain Fayetteville interests cross-examined petitioners' witnesses 
with respect to numerous reductions in rates, particularly on petroleum 
products from Wilmington in 1935 and 1936. Those rates were reduced 
to meet truck and water competition without proportionate reductions 
from River Terminal and Fayetteville, thereby resulting in an alleged 
discrimination against these two points. The North Carolina Traffic 
League also made a statement regarding this situation. 

A 10% increase in rates on petroleum products from these points 
will increase the differential thus enlarging the alleged discriminations, 
as the rates from River Terminal and Fayetteville are generally the 
maximum or normal levels and are much higher than those applying 
from Wilmington, a more distant origin. The rail carriers lost to other 
transportation agencies a large portion of the movement of petroleum 
products out of Wilmington and rates were reduced with view of 
avoiding losses and to recoup some of that already lost, if possible, 
which would increase their revenues. They have not seen the necessity 
of joining the Fayetteville railroads in reducing rates from River 



Decisions and Adjustments of Complaints 255 

Terminal, to which point petroleum products move by way of the 
Cape Fear River. 

This matter is now before us in another proceeding on petitions 
from the City of Fayetteville and the County of Cumberland, and the 
question of discrimination will be gone into thoroughly at an early 
date. The questions before us at this time involve revenue needs of all 
carriers and the reasonableness or legality of any rate or rates is not 
in issue. 

The proposed increases in rates on road building materials, sand, 
gravel, crushed stone, asphalt, tars and cement are opposed by the 
North Carolina State Highway and Public Works Commission. Trans- 
portation, it was testified, in one form or another, is the biggest single 
item entering into the cost of road construction. The class of material 
to be used is, necessarily, often determined, not by the desirability of 
the material itself, but by the cost of transportation. Thousands of 
tons of inferior material are used in the construction of roads because 
the existing freight rates do not permit the importation of higher class 
and more desirable materials into the different sections of North 
Carolina. It was stated that each and every increase in rates reduces 
the consumption of material moving by rail and forces that depart- 
ment to seek material from less desirable sources. The exigencies of 
the situation are such that the available road construction fund must 
be spread over the entire State. It is contended that the loss to North 
Carolina, as result of rate increases, is not only in dollars but in a less 
desirable product. 

There are more than a hundred portable crushers throughout the 
State and in one division alone, with 28 crushers, approximately 25% 
or 447,000 tons of stone were crushed compared with 323,000 tons 
purchased from commercial quarries for a one-year period. In another 
division 133,000 tons were produced. Since the hearing of February 
8, 1938, five additional crushers have been purchaser. It was argued 
that further increases in rates on gravel will necessitate the installa- 
tion of additional portable crushers. There are no figures as to the 
number of crushers operated by contractors but it is assumed that 
they produce 5% to 6% of their total requirements. 

There are quite a number of competitive rates on road building 
materials which have been published to meet various competitive 
conditions and it is proposed not to cancel them but to increase them 
by the amounts sought which, under the general petition, would 
be 10%. 

Conclusions 

It cannot be argued that the rail carriers do not need additional 
revenues. It is very clear that they do but it is doubtful that the 
increases sought will accomplish the desired result. With a continued 
decline in business and increased taxes, wages, prices of materials 
and supplies, etc., recognition must be given the fact that assistance 
is required by them. The record shows that some economies have 
been effectuated but whether the carriers have gone far enough in 
that direction is not a question for us but one of management. If 
there is room for further economies, and we think there is, no time 



256 N. C. Utilities Commission 

should be lost in accomplishing them. Certainly this would be meeting 
the public half-way. The belief is and has been that rates in the 
South are too high. The removal of inequities in freight rates would, 
undoubtedly, be as beneficial to the carriers as to industry. 

At present the Interstate Commerce Commission has before it an 
investigation of class rates to, from and within southern territory and 
certain commodity rates from the South to official territory. This 
will require some time; however, in the interim it is felt that some 
relief should be forthcoming to the carriers in their present difficulty. 

This Commission is given general supervision over railways and 
is empowered to fix such rates, charges and tariffs as may be reasonable 
and just, having in view the value of the property, the cost of improve- 
ments and maintenances, the probable earning capacity under the 
proposed rates, the sums required to meet operating expenses, and 
other specific matters pertinent to such an inquiry. (Southern Public 
Utilities Co., 179 N. C. 151,152.) 

Findings 
We find that the present rates are inadequate and the increases 
sought should be allowed, subject to exceptions enumerated below, 
and subject further to compliance with Consolidated Statute 3513 
requiring fifteen days' notice to the public and to this Commission. 
Rates increased as herein authorized shall be deemed maximum 
reasonable rates. 

Exceptions 

(a) The proposed increases in rates on Fertilizer and Fertilizer 
Materials, including substitution of 18 1/2 % of First-Class Rates 
on Sulphur, shall not become effective earlier than June 1, 1938. 

(b) The proposed increases in rates on Stone, Marble or Granite 
as described in Circular No. 342, and Marble, Granite and 
Stone (crushed or rubble), Stone Screenings, Gravel, Slag, 
Sand, etc., and Limestone, as described in Circular No. 356, 
shall not become effective until July 15, 1938. 

Rates in current circulars listed in the appendix may be increased 
in the amounts and to the extent enumerated therein, subject to the 
foregoing exceptions, and all outstanding orders will be amended to 
include the increases sought, also subject to the foregoing exceptions, 
where applicable, and subject further to maximum increases on 
Lumber, Fruits and Vegetables, and Sugar, carloads, as listed and 
described in the Master Tariff, X-123, bearing Agent Roy Pope's I.C.C. 
No. 305. 

The approval of these petitions may not be construed as authorizing 
a cumulation. The general petition must be considered a part and 
parcel of the rates previously approved in our Order of November 22, 
1937, relating to the original petition and Part 1 of the supplemental 
petition, as well as the increases herein approved embraced in Part 2 
of the supplemental petition. The rates previously approved and those 
now approved in petitions above, other than the general petition, may 
be published as minima. 

The rates herein approved are done so without prejudice to the 
right of any party to file a complaint under our laws for an adjustment 



Decisions and Adjustments of Complaints 257 

of any rate or rates which may be discriminatory, prejudicial, prefer- 
ential, or unreasonable. 

The finding of the Interstate Commerce Commission in 226 I.C.C. 
41, hereinbefore quoted, should be followed in applying the increases 
approved on North Carolina intrastate traffic. 

The increases herein approved, except the foregoing exceptions, 
in order to be effective under this authority, should be published 
within the next sixty days. 

At the present time there are numerous specific truck and/or water 
competitive rates published in various tariffs carrying generally inter- 
state rates. It is the wish of this Commission that all such rates be 
brought forward in one tariff which should bear the name of "North 
Carolina Competitive Tariff" or some other such designation that 
would be descriptive of its contents. Likewise the present North 
Carolina Intrastate Tariff, issued by Agent Roy Pope, F.T. No. 629-A, 
I.C.C. No. 1740 (C. R. Young Series), should be reissued. 

Order 

It is, therefore, ordered. That Part 2 of Supplemental Petition 
dated October 29, 1937, and amendments thereto; Supplements 19 and 
22 to Southern Classification No. 54; and the General Petition dated 
March 12, 1938, as amended, all of which are fully described and 
defined in the foregoing opinion, are, and they are hereby, approved, 
subject to the exceptions hereinbefore enumerated. 

It is further ordered. That the increases authorized in our Order 
of November 22, 1937, covering the original petition and Part 1 of 
the supplemental petition, as amended, together with the increases 
herein authorized as being covered by Part 2 of the Supplemental 
petition, as amended, shall be considered a part and parcel of the 
general petition and rates as result of the two former petitions may 
be applied as minima for the purpose of publishing the rates. 

It is further ordered. That the rates to be increased shall not 
become effective on less than fifteen days' notice to the public and 
this Commission. 



This 11th day of April, 1938. 



By order of the Commission: 
R. O. Self, Chief Clerk. 
(Seal) 



Stanley Winborne, 

Commissioner. 
Frank W. Hanft, 

Associate Commissioner. 



Associate Commissioner Seely did not participate in these pro- 
ceedings. 



258 N. C. Utilities Commission 

Appendix 

Circular Increase Maximum Increase 

Number Description Authorized (Cents Per lOO lbs.) 

237 Storage Rules and Charges 10% 

251 Logs, Rough, C.L 5% 

261 Switching 10% 

265 Wood, fire or cord (for fuel 

purposes) 5% 

Cottonseed, C.L 5% 

267 Cottonseed Hulls, C.L 20c per ton 

Cottonseed Hulls, L.C.L 10% 

271 Tile, Concrete Building, etc 10% 

274 Rough Logs, C.L 5% 

281 Clay, Gravel (unwashed) 10% 

282 Demurrage Rules and Charges.. 10% 
286 Artificial Building Stone: 

Description A Under $2.00 — 20c per ton 

$2.00 and over— 10% 

Description B Under $4.00 — 40c per ton 

$4.00 and over— 10% 

Description C Under $6.00 — 60c per ton 

$6.00 and over — 10% 

291 Oysters Shells, ground Under $1.00 — 10c per ton 

$1.00 and over — 10% 
293 Cotton, other than absorbent.... 5% 

295 Agricultural Implements & pts. 10% 

296 Marl and Green Sand 10% 

299 Sugar, Cane and Beet 10% 6c 

300 Boxes, paper, S.U 10% 

303 Building Material 10% 

304 Tile, etc Under 20c — 2c 100 lbs. 

20c and over — 10% 

305 Cigarettes-Smoking Tobacco .... 10% 

306 Cotton Sweepings, Motes, etc... 10% 

307 Fruit, Fresh, Cantaloupes, 

Muskmelons, Citrons, or 

Melons, N.O.I.B.N 5% 15c 

308 Cotton & Knitting Factory 

Products 10% 

309 Naval Stores 10% 

312 Furniture & Furniture Parts.... *10% 

314 Lumber and related articles 5% 6c 

316 Sumac, leaf 10% 

320 Veneers and Built-up- woods.... 10% 

324 Tobacco, unmanufactured 5% 

331 Iron and Steel, L.C.L 10% 

334 Concrete Products 10% 

335 Lime Under $2.00 — 20c per ton 

$2.00 and over — 10% 

336 Cement 7c and under — Ic cwt. 

Over 7c — 10% 

339 General Rules Rule 2 — 10% 

340 Canned Goods 10% 

342 Stone, Marble or Granite Under $2.00 — 20c per ton 

$2.00 and over — 10% 
(Effective July 15, 1938) 

343 Paper, glazed Under 16c — 2c per 100 lbs. 

16c and over — 10% 

345 Cast Iron Pipe & Fittings Under 8c — Ic per 100 lbs. 

8c and over — 10% 

346 Brick 10% 



Decisions and Adjustments of Complaints 259 

Appendix (Continued) 

Circular Inc^-ease Maximum Increase 

Number Description Authorized (Cents Per 100 lbs.) 

347 Livestock: 

Horses & Mules — Desc. 1 10% 

Other, Desc. 2 to 7, inc 5% 

348 Road Building Materials 10% 

350 Limestone or Marble 10% 

351 Petroleum and Petroleum 

Products 10% 

354 Peaches or Plums 5% 15c 

355 Scrap Iron, etc 10% 

356 Crushed Stone, etc., Limestone, 10% 

etc. (Effective July 15, 1938) 

357 Ice 10% 

360 Class Rates As Such 10% 

* Suspended. 

Dockets 191, 898 and 1239. 

IN THE MATTER OF INCREASES IN RAIL FREIGHT RATES AND 
CHARGES, 1938. 

Order 
Supplemental Order of the Commission on Further Consideration 

Question has arisen relative to the amount of increase authorized 
in our order of April 11, 1938, on Pulpwood and Extract Wood, car- 
loads. The order is interpreted as authorizing the maximum of 10% 
on such movements. We authorized only 5% on Lumber and articles 
related thereto. Logs and Fire and Fuel Wood, and our order should 
be amended to authorize only 5% on Pulpwood and Extract Wood, 
carloads, in order that no prejudice or preference will result. 

It is therefore ordered. That our Order of April 11, 1938, be and 
the same is hereby, amended by authorizing only 5% increase in rates 
on Pulpwood and Extract Wood, carloads. 

It is further ordered. That this provision shall become effective 
on April 30, 1938. 

This 25th day of April, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1239. 

IN THE MATTER OF INCREASES IN RAIL FREIGHT RATES AND 
CHARGES, 1938. 

Order 
Second Supplemental Order of the Commission 
on Further Consideration 
It appearing that several of the Southern States having denied 
increases in intrastate rates on crushed stone, sand, gravel, etc., pend- 
ing negotiations with the rail carriers by various Highway Commis- 
sions and southern shippers for a more equitable and uniform level 
of rates thereon, and upon petition of the North Carolina State High- 



260 N. C. Utilities Commission 

way and Public Works Commission requesting a postponement of the 
increases in rates on so-called highway construction materials, now 
scheduled to become effective on July 15, 1938; 

It is therefore ordered, That the Commission's Order of April 11, 
1938, authorizing an increase of 10 per cent in the rates on Marble, 
Granite, and Stone (crushed or rubble). Stone screenings, Gravel, 
Slag, Sand, etc., and Limestone, as described in Circular No. 356, 
included in the appendix thereto, effective on July 15, 1938, be and 
the same is, hereby amended by making October 15, 1938, the ef- 
fective date of the said increases instead of July 15, 1938, as pres- 
ently authorized. 

It is further ordered. That in all other respects, said order of 
April 11, 1938, shall remain in full force and effect. 

This 6th day of July, 1938. 

By order of the Commission: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1239 

IN THE MATTER OF INCREASES IN RAIL FREIGHT RATES AND 
CHARGES, 1938. 

Order 

Third Supplemental Order of the Commission 
on Further Consideration 

It appearing that negotiations with the rail carriers by various 
Highway Commissions and Southern Shippers for a more equitable 
and uniform level of rates on crushed stone, sand, gravel, etc., as re- 
ferred to in Second Supplemental Order dated July 6, 1938, have not 
been concluded, and upon petition of the North Carolina State High- 
way and Public Works Commission requesting further postponement 
of the increases in rates on so-called highway construction materials, 
now scheduled to become effective on October 15, 1938; 

It is therefore ordered, That the Commission's Order of April 11, 
1938, authorizing an increase of 10 per cent in the rates on Marble, 
Granite, and Stone (crushed or rubble), Stone screenings. Gravel, 
Slag, Sand, etc., and Limestone, as described in Circular No. 356, in- 
cluded in the appendix thereto, effective on July 15, 1938, postponed 
to October 15, 1938, by Second Supplemental Order dated July 6, 

1938, be and the same is, ^hereby amended by making January 15, 

1939, the effective date of the said increases instead of October 15, 
1938, as presently authorized. 

It is further ordered. That in all other respects, said order of 
April 11, 1938, shall remain in full force and effect. 
This 6th day of October, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1239 
(Seal) 



Decisions and Adjustments of Complaints 261 

IN THE MATTER OF AMENDMENT OF ITEM 240 OF AGENT ROY 
POPE'S TARIFF NO. 100-R, ICC 190, LOADING, UNLOADING, 
FEEDING AND WATERING CHARGES. (O.F.T.B. APPLICATION 
NO. 122) 

Order 
Appearances: 

C. W. Dilli, Commerce Agent, Southern Railway System, Wash- 
ington, D. C, for Applicants. 

By application dated July 7, 1937, filed through Agent Roy Pope, 
Southern Freight Tariff Bureau, Atlanta, Ga., in behalf of railroads 
operating within North Carolina, authority is sought to amend Item 
240, page 14 of Tariff 100-R, ICC 190, by changing the last paragraph 
thereof now reading: 

"In the absence of instructions from owners or attendant, only 
the minimum requirements above prescribed by the U. S. De- 
partment of Agriculture shall be fed to the stock." 
to read: 

"In the absence of instructions from owner or attendant, not 
less than the minimum requirements above prescribed by the 
United States Department of Agriculture shall be fed to stock." 

Hearing was held before Commissioner Winborne on August 19, 
1937. 

Applicants contend that circumstances surrounding the proposed 
change is brought about by the fact that the last paragraph of Item 
240 provides that only the minimum requirements prescribed by the 
United Statse Department of Agriculture, in the absence of instruc- 
tions from owner or attendant, shall be fed to stock. Because of the 
fact that the necesary instructions were not issued shippers have com- 
plained that the carriers have in some instances fed more than the 
minimum requirements and billed them for additional feed charges. 

Baled hay is not uniform in size or weight, for the reason that 
new or Spring hay cannot be pressed as closely as old or Fall hay. 
To do so would merely cause the first mentioned to mold. The new 
hay averages between 85 to 100 pounds per bale while the old hay 
averages from 125 to 150 pounds per bale. This commodity is sold on 
the 100-pound basis averaging in price 90 cents per 100 pounds for 
new hay and $1.20 per 100 pounds for old hay. 

According to requirements carriers have, in the past, fed one or 
two bales of hay, some of which weight in excess of 100 pounds. 
Rather than break open a bale weighing more than 100 pounds for 
the purpose of removing a portion thereof the entire bale is fed to 
the stock and the cost thereof billed against it. 

Applicants' witness testified that the rule herein proposed on North 
Carolina intrastate traffic was placed on the public docket of the 
Southern Freight Association June 4, 1937, at which time no one ap- 
peared for shippers. Its publication was made on interstate traffic with- 
in the south following action of Southwestern and Western Trunk 
line territories. 

No one appeared at the hearing on August 19, 1937, in opposition 
to the proposed rule which has general application on interstate traf- 



262 N. C. Utilities Commission 

fie in both Southern and Southwestern territory; between these terri- 
tories, and within several of the Southern states, intrastate. It is be- 
lieved that live stock can move between any two points in this State 
without having to be stopped and fed in transit. It is the opinion of 
the Commissioner that applicant has justified the proposed rule. 

It is therefore ordered, That the Proposed Rule governing the 
feeding of Live Stock as hereinabove defined and contained in South- 
ern Freight Tariff Bureau Application No. 122, be and the same is 
hereby approved. 

This 23rd day of September, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 928. 
(Seal) 

IN THE MATTER OF APPLICATION OF ATLANTIC & CAROLINA 
RAILROAD COMPANY FOR AUTHORITY TO DISCONTINUE 
PASSENGER SERVICE BETWEEN KENANSVILLE AND WAR- 
SAW. 

Order 
Under date of June 30, 1938, the Atlantic and Carolina Railroad 
Company petitioned for authority to discontinue the handling of pas- 
sengers between Kenansville and Warsaw, N. C. On April 21, 1938, 
in compliance with our Rule 12- A, notices were posted at each of the 
stations located on this line to the effect that the aforementioned 
petition would be filed. No one registered any objection to the pro- 
posed discontinuance of passenger train service and no one appeared 
at the hearing. 

The petition included the following statement of gross operating 
revenue and actual expenses incurred in passenger train service be- 
tween Kenansville and Warsaw: 
For the year 1937 

Ticket Sales $ 48.20 Salaries Paid $1,020.00 

Transporting U. S. Mail 1,339.29 Fuel, Oil, 

Misc. Revenue 60.00 S. & R 836.88 

Total $1,447.49 $1,856.88 

Net Loss $ 409.39 

For three months ending March 31, 1938 

Ticket Sales $ 8.75 Saljaries Paid $255.00 

Transporting U. S. Mail. ... 291.87 Fuel, Oil 

Misc. Revenue 12.50 S. & R 208.95 

Total $313.12 $463.95 

Net Loss $150.53 

It is observed that the handling of mail constitutes practically 
the entire source of revenue. This item, however, was discontinued on 
July 1st by the United States Post Office Department, which arranged 
for the transportation of mail between Kenansville and Warsaw by 
others. The removal of this item of income would work a serious 
handicap on petitioner should it be required to continue the operation 



Decisions and Adjustments of Complaints 263 

of passenger service for the convenience of only a few passengers, 
the revenue from which amounted to only $48.20 during the entire 
year of 1937, and $8.75 for three months ended March 31, 1938. Ex- 
cluding the U. S. Mail, the entire earnings will amount to approxi- 
mately $100.00 per annum based on figures in the foregoing state- 
ment, compared with an operating cost of $1,856.88 per annum. Even 
with the revenue from mail included, these trains during 1937 oper- 
ated at an actual loss of $409.39. 

Petitioner's line of railroad is paralleled by a highway over which 
the Queen City Bus Line and Greyhound Bus Line operate a great 
many more passenger schedules than are now being operated by the 
Atlantic and Carolina Railroad Company, and it is believed the dis- 
continuance of passenger service herein sought will not inconvenience 
the few passengers now using that service. 

The petition is approved. 

It is therefore ordered, That Petition of the Atlantic and Caro- 
lina Railroad Company for authority to discontinue the handling of 
passengers between Kenansville and Warsaw, be, and the same is 
hereby granted. 

This 26th day of July, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1346. 

APPLICATION OF ATLANTIC AND NORTH CAROLINA RAIL- 
ROAD COMPANY FOR AUTHORITY TO DISCONTINUE PAS- 
SENGER SERVICE ON TRAINS 23 AND 24 BETWEEN NEW 
BERN, N. C, AND GOLDSBORO, N. C. 

Order 

Hearing on the above application which is dated March 17, 1937, 
was held before the Utilities Commissioner at Raleigh, North Caro- 
lina, on Wednesday, April 28, 1937, at 2:30 o'clock P.M. Mr. E. W. 
Dozier, Traffic Manager at Morehead City, and Mr. W. D. Howard, 
Trainmaster at New Bern, represented the Atlantic and North Caro- 
lina Railroad Company. No one appeared in opposition to the appli- 
cation. 

At the present time petitioner operates freight trains 23 and 24 
between New Bern and Goldsboro daily except Sunday. A passenger 
coach is handled on the rear of these trains to accommodate passenger 
travel. The distance between New Bern and Goldsboro is 60 miles. 
Train 23 departs from New Bern at 5:30 A.M. and arrives Golds- 
boro at 8:25 A.M.; returning train 24 departs Goldsboro 4:15 P.M. and 
arrives at New Bern at 7:15. Neither of these trains carry express or 
mail. 

During a period of six months from September 1936 to February 
1937, both inclusive, petitioner reports total passenger revenue of 
$1,121.24 derived from these trains. During the month of January 
1937 these trains handled 583 passengers, requiring 374 stops with 



264 N. C. Utilities Commission 

earnings of $128.80. During the month of February, 1937, 446 passen- 
gers were handled, requiring 303 stops with total earnings of $90.05. 

It costs petitioner $2.00 to $3.50 per stop compared with revenue 
received of 30c to 36c per passenger stop. The discontinuance of these 
passenger cars will enable the freight trains to make only one sched- 
uled stop between New Bern and Goldsboro, namely Kinston. 

The line of the Atlantic and North Carolina Railroad Company is 
paralleled by a hard-surface highway over which a franchised bus 
company operates with adequate schedules and sufficient equipment 
to care for passengers who do not care to use petitioner's other train 
operating each way daily. 

It is the opinion of the Commissioner and he so finds that public 
convenience and necessity do not require the continued operation of 
passenger coaches on trains 23 and 24 between New Bern and Golds- 
boro, North Carolina. 

It is therefore ordered, that the Atlantic and North Carolina 
Railroad be authorized to discontinue the operation of passenger coach 
on its trains 23 and 24 operating between New Bern and Goldsboro. 

It is further ordered, That petitioner notify the public by means 
of press notices in the Goldsboro, Kinston, and New Bern newspapers 
for a period of five days before the discontinuance of this passenger 
service. 

This the 28th day of April, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 979. 

IN THE MATTER OF APPLICATION OF THE ATLANTIC COAST 
LINE RAILROAD COMPANY TO ABANDON THE USE OF THE 
UNION PASSENGER STATION AT NEW BERN. 

Order 
Appearances: 

Murray Allen, O. H. Page, L. Crocker, for Applicant 

L. P. Kennedy, for Receivers of Norfolk Southern Railroad 

Company 
Luther Hamilton, for Atlantic and North Carolina Railroad 

Company 
W. C. Chadwick, for City of New Bern 
H. M. Jacobs, for New Bern Chamber of Commerce 
L. R. Morris, Morehead City. 
The above entitled matter came on for hearing on December 29, 
1936, before this Commission upon the application of the Atlantic 
Coast Line Railroad Company for permission to cease operating its 
mixed train from and to the Union Station in New Bern and to op- 
erate said train, both for freight and passengers, from its freight sta- 
tion. 

The general superintendent of applicant's Northern Division sub- 
mitted an exhibit of gross earnings for the years of 1931 to 1935, in- 



Decisions and Adjustments of Complaints 265 

elusive, and for 11 months in 1936. After deducting certain figures 
^which covered special movements such as the New Bern Fire De- 
partment (enroute Havana, Cuba, in 1931); National Guard (in 1932); 
CCC Members (in 1933); Cole Brothers' Circus (in 1935); and sale of 
mileage books (1936) the earnings mounted to $82.96 in 1931; $198.52 
in 1932; $490.89 in 1933; $411.88 in 1934; $438.52 in 1935; and $504.45 
for 11 months, 1936. 

In October and November, 1936, only 8 and 9 passengers, respec- 
tively, traveled out of New Bern on applicant's line which extends 
southward to Wilmington. There were no figures submitted on in- 
bound passengers but, it was contended, there is no difference. Only 
a tri-weekly combination of freight and passenger train, carrying one 
coach for both white and colored passengers, is operated. The mixed 
train goes to New Bern on Monday, Wednesday, and Friday and leaves 
New Bern for Wilmington Tuesday, Thursday, and Saturday. 

It was testified that applicant abandoned all passenger service at 
New Bern several years ago and only operates this coach for the ac- 
commodation of its passengers. 

There are four daily bus schedules operating over paralleling high- 
ways between New Bern and Wilmington, which, it is stated, handle 
practically all passenger travel from and to New Bern. 

The record shows that there was not a meeting of minds as to the 
cost and the present value of the New Bern Union Station constructed 
by the Norfolk Southern Railroad Company about 1917. It was thought 
that the actual cost was approximately $62,000.00. At the time its 
construction was considered, applicant asked the Norfolk Southern 
to allow it "to use it," and additional land, costing approximately $11,- 
400.00 was acquired for this purpose. A rental agreement was entered 
into whereby the Atlantic Coast Line Railroad would pay a certain 
percentage on half of the cost of the station, with the privilege of 
withdrawing on 6 months' notice. Applicant stated that its rental pay- 
ment was 6%, however, witness for the Norfolk Southern stated that 
it was 5%. Since the latter Company, in 1935, turned back to the 
State of North Carolina, the line between Goldsboro and Morehead 
City, now known as the Atlantic and North Carolina Railroad Com- 
pany, the Union Station, except certain lands, was included, and, sub- 
sequent to that time, applicant testified, bills have been presented by 
the A&NC, payment of which has been withheld pending determina- 
tion of this proceeding. The general auditor of the A&NC denied that 
any statements had been rendered. 

The freight station applicant proposes to use from and to which 
its mixed train will operate is situated about a block and a half be- 
low the Union station at the foot of Queen Street, which, it is argued, 
-would be as convenient, if not more so, to the traveling public. It 
would save it considerable as its average monthly rental for use of 
the union station is approximately $137.00, or $15.59 per passenger 
from which the revenue is only $2.25. Hon. W. C. Chadwick, Mayor 
of the City of New Bern, however, stated that if authority is granted 
lo applicant it would result in a bad situation. He testified that this 



266 N. C. Utilities Commission 

block and a half is very rough. It would be necessary to pave the 
street; sidewalks would have to be provided; and arrangement made 
to protect pedestrians among the railroad tracks; all of which would 
cost no less than $15,000.00, The only approach to the freight station 
is by way of an alley and a very rough street. 

Counsel for applicant stated that in view of the turn of events in 
this proceeding and the insistence that the Atlantic Coast Line con- 
tinue the expense, it desired to amend the petition and ask that it 
be permitted to abandon passenger train service on its line, in the 
event this application is denied, contending that there is no public 
need for tri-weekly service on a freight train and that such service is 
too expensive. This course could not be pursued here for the reason 
that the citizens and patrons at points other than New Bern would 
be interested and should be apprised of such an action and given an 
opportunity to protect their interests. 

It is obvious that considerable weight must be given to the testi- 
mony of the Mayor of New Bern. The withdrawal from the union 
station by the Atlantic Coast Line and the substitution of its freight 
station would prove to be rather inconvenient and perhaps hazardous 
to the remaining few who continue to travel by rail. As long as ap- 
plicant invites the public to travel on its trains it should receive and 
discharge passengers at the union station. If there is insufficient de- 
mand from the public to require the operation of passenger service, 
the way is open for the railroad to so show. 

The decision reached will dispose of petition of the Atlantic and 
North Carolina Railroad Company, dated April 2, 1938, for leave to 
intervene, for rehearing and broadening of the issues. 

It is therefore ordered, That Application of the Atlantic Coast 
Line Railroad Company to abandon use of the Union Station at New 
Bern be, and the same is, hereby denied and dismissed. 

This 22nd day of April, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 760. 

APPLICATION OF ATLANTIC COAST LINE RAILROAD COM- 
PANY FOR DISCONTINUANCE OF TEACHEY AS AN AGENCY 
STATION. 

Order 
Appearances: 

Murray Allen, Raleigh, and Lloyd Crocker, Wilmington, for ap- 
plicant. 

By application dated April 1, 1938, The Atlantic Coast Line Rail- 
road Company seeks to close its agency at Teachey, except for the 
period of the strawberry season each year. 

In pursuance of Rule 12- A of our Rules of Practice and Procedure, 
notice to the effect this application would be filed was posted at that 
station, and remained posted for a period of 10 days. 



Decisions and Adjustments of Complaints 267 

No one appeared in opposition thereto, although a petition con- 
taining the names of 64 growers and shippers of fruit and produce, 
as well as the names of citizens of Teachey, submitted by the Town's 
Acting Mayor, protested against this action and requested the con- 
tinued operation of the station. The General Chairman of The Order 
of Railroad Telegraphers, with headquarters at Jesup, Ga., likewise, 
by letter, opposed this move. 

For the 12 months' period ended April 30, 1938, the earnings from 
freight business handled at this station amounted to $5,883.61, of 
which $5,008.61 accrued from carload shipments of strawberries, leav- 
ing $874.87 to cover gross earnings on other freight. It is estimated 
that 50 per cent of the latter would represent the applicant's propor- 
tion of revenue, which reduces its earnings thereon to $437.44. The 
salary of the Agent for the year under review was $991.60. 

The movement of strawberries began early this season and the fore- 
going revenue figures include $3,632.14 for May, 1937, and $1,562.61, 
for April, 1938. This accounts for an increase of 4.32 per cent over 
the year ended April 30, 1937. 

Applicant proposes to place an agent at Teachey each strawberry 
season to handle its business as well as Western Union telegrams. 
This should fully meet the demands of the shipping ad receiving pub- 
lic at Teachey and it is not believed that the closing of the station 
for the balance of the year will result in any inconvenience to the 
town and community. 

It is therefore ordered, That Application of the Atlantic Coast 
Line Railroad Company for Authority to close its agency at Teachey, 
except for the period of the strawberry season each year, be, and the 
same is, hereby granted. 

This 20th day of June, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1264. 

APPLICATION OF ATLANTIC COAST LINE RAILROAD COM- 
PANY FOR AUTHORITY TO DISCONTINUE PASSENGER TRAIN 
SERVICE BETWEEN WILMINGTON AND NEW BERN. 

Order 
Appearance: 

Murray Allen, Raleigh, for applicant. 

This application was filed on June 23, 1938, following posting of 
notices at each of the stations along the line over which it is desired 
to abandon the handling of passengers, being in compliance with Rule 
12- A of Rules of Practice and Procedure. Public hearing was accorded 
on July 6, 1938, but no one appeared in opposition to the proposal. 

The present service is on a tri-weekly operating basis and per- 
formed by freight trains, the combination of which is classed or termed 
mixed trains. 



268 N. C. Utilities Commission 

Revenue accruing from passenger travel on this line for the year 
ended April 30, 1938, was only $428.88 which alone is less than ap- 
plicant's proportion of expenses of $467.19 for use of the New Bern 
passenger station. The wages of the train crew amounted to $12,- 
099.22; however, as the trains handle principally freight these expenses 
were not segregated to show what part thereof was allocated to the 
passenger service. Failure to make such an allocation was due to the 
fact that the number of cars of freight handled was not known. It 
was contended, however, that some saving would result by the dis- 
continuance of these passenger operations. 

Evidence was submitted to the effect that these trains make a great 
many trips without any passengers and it was estimated that for one- 
third of the time no passengers whatever use the facilities. The line 
is paralleled by a hard surface highway over which there is a double- 
daily bus service ample to provide accommodations for the few pas- 
sengers now using the rails and, doubtless, much more convenient. 

While no mail is handled on these trains express will continue to 
be transported as heretofore. 

It is clearly shown that there no longer exists a demand for pas- 
senger service over applicant's line between Wilmington and New 
Bern, and as public necessity and convenience do not require the con- 
tinued performance of these trains, the application will be granted. 

It is therefore ordered. That application of the Atlantic Coast 
Line Railroad Company for authority to discontinue passenger train 
service between Wilmington and New Bern be, and the same is, hereby 
granted. 

This 8th day of August, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1339. 

APPLICATION OF NORFOLK & WESTERN RAILWAY COMPANY 
TO DISCONTINUE OPERATIONS ON TRAINS NOS. 31 AND 32 
BETWEEN WINSTON-SALEM, N. C, AND ROANOKE, VA. 

Order 

Hearing on application of the Norfolk & Western Railway dated 
April 3, 1937, seeking authority to discontinue its trains 31 and 32 
operating between Winston-Salem, N. C, and Roanoke, Va., was held 
in the office of and before Utilities Commissioner Stanley Winborne 
on Monday, May 17, 1937, at 2:30 P.M. Lucian H. Cocke, Jr., Counsel, 
C. W. Parrish, and James O. Keefe appeared for applicant. There was 
no opposition. 

Train No. 31 is a mixed passenger and freight train operating daily 
out of Roanoke, Va., at 7:15 P.M., arriving Winston-Salem, N. C, at 
11:40 P.M. This train was established on April 26, 1936, for the pur- 
pose of taking carload freight destined to Winston-Salem, N. C, and 
other Southern points from applicant's main line train No. 84, origi- 
nating west of Roanoke, Va. Passenger service was added to this sched- 



Decisions and Adjustments of Complaints 269 

ule in the belief that some passenger travel might be secured, and that 
the train might also carry United States Mail. 

Train No. 32 is a passenger train and operates northbound, leaving 
Winston-Salem at 6:30 P.M., arriving Roanoke at 10:15 P.M. This is 
a companion train to Southbound No. 31 and was established for the 
purpose of returning the engine, cars, and train crews to Roanoke. 
Unlike train No. 31, No. 32 was not established in the belief that pas- 
senger travel demanded the service. In addition to these trains, which 
applicant requests authority to abandon, there are two daily round 
trips made between Roanoke and Winston-Salem, which, it is con- 
tended, will serve the convenience and necessity of the traveling pub- 
lic. 

During the period from April 1, 1937, through April 15, 1937, train 
No. 31 handled 305 passengers with revenue of $193.65, or a daily 
average of 20.3 passengers and revenue of $12.91. Train No. 32 dur- 
ing this fifteen day period, handled 202 passengers with revenue of 
$136.73, or a daily average of 13.5 passengers and $9.12 revenue. This 
is not very different from the averages for eleven months ending 
March 31, 1937, during which period train 31 handled a daily aver- 
age of 22.6 passengers with a daily revenue of $15.24. The daily av- 
erage number of passengers handled by train No. 32 was 15 for which 
the daily average revenue was $9.51. Only a small number of pas- 
sengers handled on these trains traveled between points in North Car- 
olina. 

The inauguration of these trains failed to meet the expectations 
of applicant. No contract to handle United States Mail was secured 
from the Government. The discontinuance of passenger service on 
these two trains will enable applicant to inaugurate new trains to 
handle freight exclusively and, it is contended, will greatly facilitate 
and shorten the time for making freight deliveries between the East 
and the South. 

It is found that public convenience and necessity does not require 
the operation of these trains. 

It is therefore ordered that the Norfolk and Western Railway 
Company be permitted to discontinue the operation of its trains 31 
and 32 between Winston-Salem, N. C, and Roanoke, Va., effective 
on or after June 5, 1937. 

This the 20th day of May, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 994. 

IN THE MATTER OF APPLICATION OF NORFOLK AND WEST- 
ERN RAILWAY COMPANY TO INCREASE PASSENGER FARES 
IN COACHES TO 21/2 CENTS PER MILE. 
Appearances: ^^^^^ 

Lucian Cocke, Jr., Roanoke, Va., for applicant. 
By application dated July 9, 1938, Norfolk & Western Railway 



270 N. C. Utilities Commission 

Company, applied for authority to increase its passenger fares good 
in coaches between points on its lines in North Carolina to 2.5 cents 
per mile, being that authorized by the Interstate Commerce Commis- 
sion in its Docket Ex Parte No. 123, decided July 5, 1938, for an ex- 
perimental period of 18 months only. 

Through the medium of the Press, the public was advised of this 
proposal. Notices were also posted at each station on the applicant's 
railway. No one appeared in opposition thereto. 

The aforementioned opinion of the Interstate Commerce Commis- 
sion has been made a part of this proceeding and as same is now a 
matter of public record, no comment need here be made. 

The lines of applicant are principally in eastern or official terri- 
tory with three branch lines running south from Roanoke, Va., to 
Winston-Salem, N. C; south from Lynchburg, Va., to Durham, N. C, 
and south from Abingdon, Va., to West Jefferson, N. C. These three 
branches, comprising of slightly more than 100 miles within the bor- 
ders of the State, earned, for a period of 12 months ended May, 1938, 
$4,828.08 representing the handling of 14,687 intrastate passengers. 
From this it is noted the average fare was about 33 cents, represent- 
ing an average movement of no more than 17 miles. 

The present fare of 2 cents a mile represents a reduction of 44 
per cent under the original fare of 3.6 cents per mile. It is contended 
that the costs of performing passenger service have increased sub- 
stantially. The value of such service has likewise increased. Several 
new deluxe air-conditioned coaches, with revolving and adjustable 
seats and commodious smoking rooms for men and women, at a cost 
of approximately $43,000.00 per car, have been placed in service, and 
many coaches and dining cars have been renovated and air-conditioned 
at an average cost of $8,500.00 per car. All trains operating into North 
Carolina by applicant have been completely air-conditioned. 

Under the circumstances, it is contended, even if it be assumed 
that a basic fare of 2 cents per mile was a maximum reasonable level 
for coach travel in 1936, the upward trends (1) in railroad operating 
costs, and (2) in the value of the service since that time, fully justify 
the increase in coach fares now requested. 

In addition to the various reasons given by applicant, it is argued 
that this increase is necessary in order that unjust discrimination 
against interstate commerce, and undue prejudice against persons and 
localities engaged in such commerce may be avoided — a situation 
prohibited and made unlawful by section 13(4) of the Interstate Com- 
merce Act — to which we do not fully agree. Were there such viola- 
tions, the southern lines operating in North Carolina would be re- 
quired to increase their fares to the interstate level authorized by 
the Interstate Commerce Conimission over applicant's branch lines be- 
tween North Carolina and Virginia, even though said southern lines 
have requested no similar increases. Therefore, whether this appli- 
cation is granted or denied, the situation would remain unchanged. 

Insofar as passenger fares are concerned the Norfolk and Western 
Railway has considered its line as an eastern carrier whereas from 



Decisions and Adjustments of Complaints 271 

the viewpoint of freight its branch lines extending into North Carolina 
are considered southern lines which generally enjoy higher rates than 
would be the case if it also considered the entire line as in official 
territory. Reasons were given why it could not apply official freight 
rates from and to Durham and Winston-Salem. 

Failure to apply the increased passenger fares within North Caro- 
lina would necessitate the publication of separate tariffs to cover 
meagre intrastate travel over its limited and small mileage. 

It is not believed that the proposed increase will be beneficial to 
applicants in view of the fact there are other and more economical 
ways that may be used by the traveler if rail passenger fares are 
made out of his reach. Inasmuch, however, as the proposed increase 
is for a period of 18 months only, and in deference to the suggestion 
made by the Interstate Commerce Commission that State Commissions 
approve the increases, it is decided to grant the application. 

It is therefore ordered, That application of the Norfolk and 
Western Railway Company to increase passenger fares good in coaches, 
to 21/2 cents per mile between points on its line in North Carolina, be, 
and the same is, hereby granted, to expire 18 months from effective 
date herein authorized. 

]^T IS further ordered, That applicant be authorized to publish 
the increased fares, hereinabove approved, effective not earlier than 
July 25, 1938, the effective date of the interstate fares of eastern rail- 
roads, approved by the Interstate Commerce Commission in connec- 
tion with its decision in Ex-Parte No. 123, of July 5, 1938. 

This 23rd day of July, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1353. 

APPLICATION OF NORFOLK SOUTHERN RAILROAD COMPANY 
(MORRIS S. HAWKINS AND L. H. WINDHOLZ, RECEIVERS), 
AND SEABOARD AIR LINE RAILWAY (L. R. POWELL, JR., AND 
HENRY W. ANDERSON, RECEIVERS) FOR AUTHORITY TO DIS- 
CONTINUE THE JOINT AGENCY AT BONSAL, N. C. 

Order 
Appearances: 

For Applicants: Mr. L. P. Kennedy, Norfolk Southern Railroad 

Co. Mr. R. W. Rogers, Seaboard Air Line Railway. 
For Protestants: None. 

By application dated September 2nd and October 29th, 1937, re- 
spectively, by Receivers of the Norfolk Southern Railroad Company 
and Receivers of the Seaboard Air Line Railway, authority is sought 
to close their joint agency at Bonsai, North Carolina. 

These applications were docketed for public hearing before me in 
Raleigh on Monday, November 8th, 1937, at 2:30 o'clock P.M. No one 
appeared in opposition thereto. 

For the twelve-month period ending June 2nd, 1936, the gross 
revenues of the Norfolk Southern Railroad Company was $112.90, 



272 N. C. Utilities Commission 

and of the Seaboard Air Line Railway, $40.58, or an equivalent of 
a joint monthly average of $12.79. Prior to the recent increases granted 
in salaries and wages, the salary of the joint agent at Bonsai was 
$72.93. This was later increased to approximately $83.00 per month. 
Other expenses of maintaining the agency at Bonsai, approximately 
$17.00 per month, results in a total cost of $100.00. The expenses be- 
ing considerably more than gross earnings accruing at this point, it is 
my opinion that applicants should no longer be required to continue 
the agency. 

It is therefore ordered, That Applicants, Norfolk Southern Rail- 
road Company (Morris S. Hawkins and L. H. Windholz, Receivers), 
and Seaboard Air Line Railway (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) be, and they are hereby authorized to close their 
agency at Bonsai, North Carolina effective on or after December 1st, 
1937, and make same a prepay point. 
This 10th day of November, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1082. 
<Seal) 

APPLICATION OF NORFOLK SOUTHERN RAILROAD COMPANY 
(MORRIS S. HAWKINS AND L. H. WINDHOLZ, RECEIVERS) 
FOR AUTHORITY TO DISCONTINUE ITS AGENCY AT COR- 
INTH, N. C. 

Order 
Appearances: 

L. P. Kennedy, for Norfolk Southern Railroad Company, appli- 
cant. 
W. B. Rowles, for protestant. 

Application of Norfolk Southern Railroad Company (Morris S. 
Hawkins and L. H. Windholz, Receivers), dated September 2, 1937, 
for authority to discontinue its Agency at Corinth, North Carolina, 
was heard by me in my office on Monday, November 8, 1937. 

Notice to the effect that this application would be made was duly 
posted at the proper places at Corinth and remained posted thereat 
for the required period pursuant to Rule 12- A of our Rules of Prac- 
tice and Procedure. 

For the year ended June 30, 1937, freight revenue on shipments 
received at that point amounted to $487.93, and freight revenue on 
forwarded shipments amounted to $340.81. The passenger revenue for 
this period amounted to only $11.03. The combined revenues were 
$839.76, averaging $69.98 per month, compared with the agent's salary 
of $72.93 monthly for this period. Subsequent to June 30, 1937, the 
agent's salary was increased $10.20 per month, thereby making his 
salary $83.13. Incidental to the operation of this agency a small ad- 
ditional cost must be added to cover fuel, stationery, supplies, etc. 

Corinth, while served by paved highways, is 7 and 10 miles, re- 



Decisions and Adjustments of Complaints 273 

spectively, from Duncan and Colon, N. C, and to close this agency- 
would necessitate shippers going to these points to place orders foi 
cars or endeavor to get them placed for loading at the time trains 
pass. It was stressed by protestant that this would result in consider- 
able inconvenience to him as well as other shippers at and in the 
vicinity of Corinth. 

Protestant testified that he has just received a contract for a large 
quantity of pulp wood to move to Plymouth, N. C, and that he would 
commence shipping at an early date approximately six carloads per 
week which, he contended, would increase applicant's revenues con- 
siderably. 

Applicant is and has been in receivership for several years and 
it has practiced economy, where it has been possible to do so, with 
view of placing itself in position to better serve its patrons. The dis- 
continuance of the agency at Corinth is one of the steps. 

It is my opinion that revenues do not justify the expense of con- 
tinuing this agency, however, to completely close the same would 
greatly inconvenience shippers and receivers of freight at Corinth and 
vicinity. Such action, I believe, would be unfair to them. The pur- 
poses of all would be well served by substituting a caretaker for the 
agent which could be done at a minimum cost and it is my opinion 
that such an arrangement should be effectuated. 

It is therefore ordered. That applicant, Norfolk Southern Rail- 
road Company (Morris S. Hawkins and L. H. Windholz, Receivers), 
be, and it is hereby, authorized to discontinue its agency at Corinth, 
North Carolina, effective not earlier than December 1, 1937. 

It is further ordered. That applicant be, and it is hereby, re- 
quired to provide, simultaneously with the removal of said agent, a 
caretaker in lieu of the agent until further ordered. 

This 13th day of November, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1083 

(Seal) 

APPLICATION OF NORFOLK SOUTHERN RAILROAD COMPANY 
(MORRIS S. HAWKINS AND L. H. WINDHOLZ, RECEIVERS) 
FOR AUTHORITY TO DISCONTINUE SERVICE AT JACKSON 
SPRINGS, N. C. 

Order 
Appearances: 

L. P. Kennedy, J. S. Cox, and J. W. Roberts, for applicant. 

R. A. Derby, H. R. Currie, Otis Poole, J. P. Richardson, U. G. 

Currie, Hubert Carter, and Marvin Poole, for protestants. 

This application, which was heard on December 18, 1937, seeks 
authority to discontinue service at Jackson Springs, the terminus of 
a branch line four miles in length extending southward from West 
End. This point is the only agency on the branch and the majority 



274 N. C. Utilities Commission 

of the evidence dealt with operations on same and the costs thereof. 
The discontinuance of service at Jackson Springs would, in effect, 
be tantamount to the discontinuance of service on the entire branch 
line and for all purposes the conditions of said branch line will be 
considered as part of these proceedings. 

This line consists of 45 pound rail over which a very light loco- 
motive operates. To continue its operation and maintenance it would 
be necessary to rebuild the line in order that heavier locomotives 
operating on the Ellerbe line might also be used on the branch in 
question. This branch is in very poor condition at this time and to 
put it in its proper condition would require an expenditure of $5,400.00 
to $5,600.00, plus an annual maintenance of approximately $2,000.00. 

For a period of 22 months ended October 31, 1937, the gross reve- 
nue to and from Jackson Springs station amounted to $4,026.83, or 
a monthly average of $183.04. It is assumed that 50%, which is very 
generous, may be considered as accruing to this line, which would 
result in a monthly allocation to it of $91.52. The average monthly 
expense at Jackson Springs alone for this period amounted to $76.09 
being the salary of the agent. Other expenses such as maintenance of 
tracks and structures; trucking less than carload freight between West 
End and Jackson Springs; train and engine crew service; insurance, 
taxes, car hire, supplies and expenses of maintenance of equipment, 
stationery, tariffs, and other incidentals made up the remainder of 
operating costs of $435.42, resulting in an average monthly loss of 
$342.90. 

Peach traffic accounts for the greatest amount of revenues on this 
branch. However, this declined from a high of 165 cars in 1931 to 
33 cars in the current year of 1937. There are several peach orchards 
in the vicinity of Jackson Springs, the principal one being located 
at Derby Center located 6.2 miles from Jackson Springs. This orchard 
is also located 6 miles from Plainview, an agency point on the Ellerbe 
branch, to which it is suggested by applicant that peaches may be 
trucked in the future for loading into cars. 

Conditions at Jackson Springs are very bad in that the two tracks 
lie between the highway on one side and a branch or creek on the 
other side, there being only 30 to 50 feet between said highway and 
branch or creek, thereby offering no possibilities of providing good 
facilities for the use of trucks going to and from the cars, while on 
the contrary at Plainview the land is generally level on either side 
of the track and sufficient to construct suitable and adequate facilities 
at a nominal expense. 

Protestants opposed the discontinuance of this service because it 
would eventually mean the abandonment of the railroad serving Jack- 
son Springs. There are no industries located there and its population 
is probably less than 100, although at one time it was a flourishing 
resort. The principal objection came from those who have telephone 
service from the orchards to Jackson Springs which could be freely 
used in ordering cars, etc., and which service they do not have at 
Plainview. This unquestionably is a great convenience to them at the 



Decisions and Adjustments of Complaints 275 

peak of the peach movement, however, this feature alone can not be 
considered in determining whether applicants should be required, from 
the standpoint of public convenience and necessity, to continue serv- 
ing this community at great expense for which it receives in revenue 
nothing like out-of-pocket costs. 

If public convenience and necessity require the construction of a 
railroad, it must, of course, receive revenues that will yield a fair 
return on its investment. If losses are sustained in the operation of 
any line due to continued declines in commerce, and economies have 
been applied to the fullest extent, as appears to be the case here, it 
necessarily follows that public convenience and necessity no longer 
require the line. 

It is certainly not the desire or wish of this Commission to close 
any station, or to take away from the people any service, no matter 
how slight, and it is with great reluctance that orders are made al- 
lowing stations to be closed or service to be withdrawn but, never- 
theless, it is faced with facts it cannot ignore and therefore, in light 
of the testimony and evidence the conclusion that the service should 
be discontinued is inescapable. 

It is therefore ordered. That application of the Norfolk South- 
ern Railroad Company (M. S. Hawkins and L. H. Windholz, Receivers) 
for authority to discontinue service at Jackson Springs, N. C, be, 
and the same is hereby, granted, effective on or after January 15, 1938. 

This 22nd day of December, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1167. 

PETITIONS OF THE NORFOLK SOUTHERN RAILROAD COM- 
PANY (M. S. HAWKINS AND L. H. WINDHOLZ, RECEIVERS), 
FOR AUTHORITY TO DISCONTINUE PASSENGER TRAIN SERV- 
ICE BETWEEN BRIDGETON AND ORIENTAL, EDENTON, N. C, 
AND SUFFOLK, VA., FAYETTEVILLE AND VARINA, MACKEYS 
AND COLUMBIA, ABERDEEN AND ASHEBORO, PINETOWN 
AND BELHAVEN, AND MARSDEN AND NEW BERN. 

Order 
Appearances: 

L. P. Kennedy, J. C. Poe, L. A. Beck, J. W. Roberts, *Larry I. 

Moore, *Simms and Simms, for petitioners. 
Willis Smith, Stanley Woodland, C. H. Drazy, for Intervener in 

Docket No. 1247. 
* Appearing in Docket No. 1247. 

These petitions were filed with this Commission on March 21, 1938, 
and heard on April 5, 6, and 7, 1938. In compliance with our Rules 
of Practice, Public notices of intention to discontinue handling pas- 
sengers were posted by petitioner at all stations along the lines af- 
fected. 

A number of protests were filed with us prior to the hearings, 



276 N. C. Utilities Commission 

some of which were resolutions from various towns, some petitions 
and others letters. Doubtless, many of them were not aware of the 
intent of petitioner that only the passenger service was involved, and 
not express or freight service. Petitioner apprised a number of these 
protestants of this fact as a consequence of which practically all op- 
position was withdrawn. 

In each case at issue passenger service over the lines to be with- 
drawn is performed by freight trains, the combination of which is 
classed or termed mixed trains. 

Petitioner made it clear that it is its desire to exhaust every rem- 
edy at its command to bring about a reasonable and sensible opera- 
tion of its properties before financial assistance is requested of the 
Government. This, it is indicated, is an equitable and common-sense 
policy. 

The calculations herein given are based on actual revenues and 
expenses during a four months' period of November and December, 
1937, January and February, 1938, which are used in arriving at 
yearly, monthly and daily averages. The period used as a basis for 
these calculations represents substantially the same service rendered 
in the past several years, and are considered an average. 

In each of the cases at issue all expenses of performing the pas- 
senger service sought to be discontinued includes car repairs, sta- 
tionery and printing, wages of train and engine crews, locomotive 
fuel, water for locomotives, locomotive lubricants and supplies, train 
supplies and expenses. Auditing Department clerical expenses, and 
Unemployment and Railroad Retirement Taxes. Only actual out-of- 
pocket costs are included in these items of expenses. 

Docket No. 1241 
Passenger Service Between Bridgeton and Oriental 

Bridgeton, the Western terminus of the Oriental branch, is located 
on the North bank of Neuse River across from New Bern. The dis- 
tance between Bridgeton and Oriental is 24 miles. The latter point 
has a population of 300 to 400 people and is also located on the Neuse 
River. A hard surface highway parallels this line and during recent 
years bus service has been made available between these points and, 
it is contended, adequately serves the traveling public. 

Passenger service is presently performed by petitioner four days 
each week, two trips during which are made in one direction and 
two returning on separate days. 

Income compared with the expenses of these trains is shown below: 

Yearly Monthly Daily 

Income $ 85.65 $ 7.14 $0.41 

Expenses 1,312.77 109.39 6.31 

Loss 1,227.12 102.25 5.90 

Docket No. 1242 
Passenger Service Between Edenton, N. C, and Suffolk, Va. 
Edenton is located on the main line of the Norfolk Southern Rail- 
road Company and is also the Southern terminus of its branch run- 



Decisions and Adjustments of Complaints 277 

ning northward a distance of 50 miles to Suffolk, Va. At the present 
time only tri-weekly service is performed, however, this branch is 
paralleled by a hard surface highway over which we understand there 
is adequate bus service to accommodate the traveling public. 

The following table shows the income derived from this passenger 
service compared with expenses incident to its performance: 

Yearly Monthly Daily 

Income $ 136.50 $ 11.38 $0.44 

Expenses 2,669.24 222.44 8.52 

Loss 2,532.74 211.06 8.08 

The authority herein granted will not be construed as discontinu- 
ing service over that part of this line, approximately 10 miles, oper- 
ating within the State of Virginia between Suffolk and the North 
Carolina-Virginia State Line. Such authority must be forthcoming 
from the State Corporation Commission, Commonwealth of Virginia. 

Docket No. 1243 
Passenger Service Between Fayetteville and Varina 
The distance between Fayetteville and Varina is 44 miles. The 
former is its Southern terminus and connects with the Atlantic Coast 
Line and Aberdeen and Rockfish Railroad Companies. At Varina it 
connects with petitioner's Charlotte-Raleigh line as well as the Dur- 
ham and Southern Railway. At present daily, except Sunday, passen- 
ger service is rendered. This service, however, cannot compete with 
buses between these points over hard surface highways. Buses leave 
Varina at 8:31 A.M., 2:43 P.M. and 6:18 P.M., arriving Fayetteville at 
10:10 A.M., 4:25 P.M. and 8:00 P.M. Northbound they depart from 
Fayetteville at 7:40 A.M., 12:15 P.M. and 6:50 P.M., arriving Varina 
at 9:16 A.M., 1:51 P.M. and 8:42 P.M. 

The following statement shows the income from these two trains 
and expenses incident to their operations: 

Yearly Monthly Daily 

Income $ 173.70 $ 14.48 $0.55 

Expenses 3,047.59 253.96 9.73 

Loss 2,873.89 239.48 9.18 

Docket No. 1244 
Passenger Service Between Mackeys and Columbia 
Mackeys, a small town with a population of approximately 50 
people, is located on the South side of Albemarle Sound in Washing- 
ton County. The line of railroad, over which abandonment of passen- 
ger service is sought, extends eastward to the town of Columbia, in 
Terrell County, a distance of 23 miles. The trains on which passenger 
service is rendered operates over this branch tri-weekly, leaving Co- 
lumbia one day and returning the next. This service has been sub- 
stantially the same for several years, but has been performed at a 
loss since the advent of good highways. There is a hard surface high- 
way beginning at a point one mile South of Mackeys extending to Co- 
lumbia over which four buses operate daily, except Saturday and Sun- 
day, on which days two additional schedules are provided. There are 



278 N. C. Utilities Commission 

several towns on this line intermediate to Columbia, the most impor- 
tant of which is Creswell. 

The subjoined statement shows income from and expenses inci- 
dent to the operation of these trains: 

Yearly Monthly Daily 

Income $ 227.25 $ 18.94 $0.72 

Expenses 2,701.29 225.11 8.63 

Loss 2,474.04 206.17 7.91 

Docket No. 1245 

Passenger Service Between Aberdeen and Ashehoro 

This line extends from Aberdeen, at which it connects with the 
Aberdeen and Rockfish Railroad and Seaboard Air Line Railway, 
across its main line at Star to Asheboro, where it connects with the 
High Point, Randleman, Asheboro and Southern Railway, a distance 
of 56 miles. The running time for the mixed trains over this line is 
about four and one-half hours. A hard surface highway parallels this 
line, also, over which four bus schedules daily are provided, with two 
additional ones between Asheboro and Candor, about half the distance. 

In conjunction with service rendered by these trains the statement 
below shows income derived therefrom and the cost of performing 
the service: 

Yearly Monthly Daily 

Income $ 232.35 $ 19.36 $ 0.74 

Expenses 5,076.42 423.03 16.21 

Loss 4,844.07 403.67 15.47 

Docket No. 1246 
Passenger Service Between Pinetown and Belhaven 

Passenger service between these points is similar to that between 
Mackeys and Columbia. The distance between Pinetown and Belhaven 
is 17 miles and mixed trains operate over the line on tri- weekly 
schedules. 

Belhaven, the most important of the points on this branch and its 
Eastern terminus, is located on Pungo River. There is a hard surface 
highway from Belhaven to Washington with a daily bus service of 
50 minutes from and to these points. While this highway does not 
pass through Pinetown it intersects with a lighter-built road to and 
from Pinetown. 

The cost of operating these trains is excessive as will be shown 
in the following statement: 

Yearly Monthly Daily 

Income $ 375.15 $ 29.76 $1.14 

Expenses 3,020.18 251.68 9.65 

Loss 2,663.03 221.92 8.51 

Docket No. 1247 

Passenger Service Between Marsden and New Bern 

The Atlantic and North Carolina Railroad Company intervened in 

this case and moved that the matter should not be disposed of at this 

time for the reason that its counsel was confined to the hospital and 

time should be allowed to enable the railroads serving New Bern to 



Decisions and Adjustments of Complaints 279 

agree among themselves as to some disposition of the Union Station 
at that point. 

At present there is pending before this Commission application of 
the Atlantic Coast Line Railroad Company for authority to withdraw 
from this station which, if done, counsel for intervener argued, would 
place the entire burden of maintenance, etc., on the Atlantic and 
North Carolina Railroad Company. 

Petitioner's counsel, in opposition to the motion, argued that the 
question presented by intervener is not pertinent to the issues being 
heard. The question raised, it is contended, arises upon a contractual 
basis and not upon a basis of public convenience and necessity for 
the purpose of continuation of passenger trains between Marsden and 
New Bern, and that the Commission, in passing upon this petition 
should not be affected by some arrangement foreign to the issues 
before us and which the carriers at New Bern may have between 
themselves — that that would be a matter of adjustment between them- 
selves, or upon some other petition, and not involved in this hearing. 

It was stated from the bench that in the event abandonment of 
the passenger service between Marsden and New Bern was found jus- 
tified, an order would be made so authorizing without prejudice to 
the rights of any party as to their liability under any other contract. 

The rail distance between these two points is 31 miles and the 
entire line is paralleled by a hard surface highway which touches each 
point on the line of the railroad and over which there operates eight 
franchise bus schedules — four in each direction, daily. Some of these 
bus schedules arrive or depart substantially on the same schedules 
of the trains. The running time of the buses between Marsden and 
New Bern is 50 minutes, while that of the trains is 1 hour and 30 
minutes. 

Buses arriving New Bern from Marsden make direct connections 
with other buses destined to Kinston, Goldsboro, Morehead City, and 
Wilmington. In some instances buses from Marsden have Wilmington 
as their destination. Likewise, the afternoon bus arriving New Bern 
connects with the A&NC passenger train enroute to Goldsboro and 
passengers arriving New Bern from Morehead City by rail in the 
morning connect with the bus departing for Marsden, there being 
only 20 minutes lay-over at New Bern. 

In the Atlantic and North Carolina Railroad's petition for leave 
to intervene in this case it was alleged that the discontinuance of 
passenger train service, as proposed, will seriously interrupt and in- 
terfere with the operation of through and interline passenger service 
to the public between towns and territory served respectively by the 
two carriers. For a period of four months ended February 28, 1938, 
petitioner testified that train 11 from Marsden carried 24 passengers 
riding on interline tickets. Eight of these traveled during the month 
of November and seven in December, 1937; five in January and four 
in February, 1938. The revenue accrued therefrom amounted to $16.22 
or $4.05 per month. There were no passengers on northbound train 
No. 12 traveling on interline tickets during this period. 



280 N. C. Utilities Commission 

The following is a statement of income derived from the opera- 
tions of these trains compared with expenses incident thereto: 

Yearly Monthly Daily 

Income $ 949.05 $ 79.09 $ 3.03 

Expenses 5,021.25 418.44 16.04 

Loss 4,072.20 339.35 13.01 

In each of the above cases Petitioner's Chief Accounting Officer tes- 
tified and submitted exhibits appertaining to the general financial 
condition of the entire line, which includes freight as well as passen- 
ger statistics, for a period of several years. 

In 1933 the average miles of road operated was 890.32 and in 
1937, 791.70, the reduction resulting from the abandonment of certain 
unprofitable branches as well as the turning back to the State of North 
Carolina the Atlantic and North Carolina Railroad Company in the 
latter part of 1935, being that part operating between Goldsboro and 
Morehead City, and also approximately 3 miles from Morehead City 
to Beaufort now known as the Beaufort and Morehead City Railroad 
Company. 

Its net operating income before deduction of fixed charges for the 
years of 1933 to 1937, inclusive, follows: 

1933 1934 1935 1936 1937 

$344,049 $559,834 $370,754 $380,553 $320,841 

This results in the following annual return on value of railway 
property fixed by the Bureau of Valuation of the Interstate Com- 
merce Commission as of January 1, 1937, adjusted for property 
changes: 

1933 1934 1935 1936 1937 

1.51% 2.56% 1.71% 1.82% 1.82% 

For the months of November and December, 1937, January and 
February, 1938, the subjoined table will show petitioner's railway 
operating revenues and expenses, net railway operating income or 
deficit before deducting fixed charges, tax accruals, and rate of return 
based on valuation of the Interstate Commerce Commission for rate 
making purposes: 

19 3 7 19 3 8 

November December January February 
Ry. Operating Revenues. ...$360,688 $308,533 $273,969 $288,536 
Ry. Operating Expenses .... 314,082 306,847 287,861 269,251 

New Revenues from 

Railway Operations 46,606 1,686 (d) 13,892 19,285 

Railway Tax Accruals 31,497 35,380 33,077 30,538 

Railway Operating Income 15,109 (d)33,694 (d)46,969 (d)ll,253 

Total Rents— Net 24,433 20,013 9,781 11,350 

Net Ry. Operating Income (d)9,324 (d)53,707 (d)56,750 (d)22,603 
Rate of Return None None None None 

The total net railway income (deficit) before any deduction is 
made for fixed charges, for the four months' period, is a deficit of 
$142,384.00, or an average of $35,596.00 per month. 

There has been a continued decline since 1920 in passenger revenue 
and passengers carried. In 1920, 1,787,932 passengers traveled by 
petitioner's trains with revenue therefrom being $1,761,875. In 1937, 



Decisions and Adjustments of Complaints 281 

only 130,392 passengers, or 7% of the number handled in 1920, traveled 
in petitioner's trains. 

For this number the revenue amounted to only $68,747.00. 

The revenue passengers per mile were 58,991,114 in 1920 compared 
with only 4,554,400 in 1937. 

The average passenger revenue per train mile declined from $1.35 
in 1920 to 14 cents in 1937. 

The decline in gross revenue earned and in the quantum of trans- 
portation used by the public, it was contended, cannot be charged to 
paucity of service furnished. Relatively, the amount of service fur- 
nished is greater now, considering the patronage, than it was pre- 
viously. 

The average haul of revenue passengers on the Norfolk Southern 
has ranged from 31.43 miles to 49.23 miles, which reveals that the 
travel is preponderantly local. 

Likewise, petitioner argued, that when the short distance of the 
average journey is considered in connection with the increase in 
improved highway mileage and the great increase in the number of 
private automobiles owned, it may be readily surmised that an average 
journey of 34.93, which was the 1937 average, can be made in 45 
minutes by automobile, which is not much more than the time it would 
require to travel to and from the railway stations. This situation 
would appear to explain the failure of thq greatly reduced rail fares 
to permanently increase rail travel on petitioner's trains. 

An exhibit was submitted to show gross revenues from all pas- 
senger-train services, expenses charged direct to passenger train 
services, expenses apportioned together with the total operating 
expenses charged to such services. It was explained that for the years 
of 1930, 1931, 1932, 1936, and 1937, the gross revenues from passenger- 
train operations failed to cover the direct charge which are largely 
out-of-pocket expenses, and that in no years, except 1922 and 1923, 
did the gross revenues cover the entire expense chargeable to these 
operations. 

Passenger-train service on the Norfolk Southern Railroad has been 
conducted at a substantial loss, the seriousness of which, petitioner 
states, is accentuated now by the marked decline in freight traffic 
volume and the reduced margin between operating costs and gross 
revenues from all traffic. 

The discontinuance of passenger train service herein sought will 
leave service available between Charlotte, N. C, and Norfolk, Va., 
only. There is another petition pending that would remove the service 
between Charlotte and Raleigh leaving only passenger train service 
between the latter and Norfolk, Va. 

Petitioner is exercising every effort at its command to effect 
economies and by discontinuing these services, it is felt that the entire 
line might be saved thereby rendering efficient freight service with 
view of holding intact some of its branches not now operating profit- 
ably. To abandon unprofitable branches at this time would greatly 



282 N. C. Utilities Commission 

inconvenience shippers and receivers of freight in the communities or 
sections presently served by such. 

Prior to the construction of good highways which now form a 
net-work over the entire State, reaching every city and practically 
every town or community, there was public necessity for these pas- 
senger trains, but since the advent of our highways over which many 
bus companies operate, serving the public in many ways that cannot 
be performed by petitioner, it has become more convenient for the 
public to use this new transportation agency and as such has replaced 
petitioner's line as a public necessity. 

The record does not show that public convenience and necessity 
require the continuance of the trains sought to be abandoned. There 
appears, however, a necessity for the continuance of the lines over 
which these trains operate to serve the sections in which they run in 
order that commodities may be marketed for the benefit of all. 

We find that the discontinuance of the passenger trains hereinbefore 
discussed will not result in any hardship on the public and the petitions 
should be allowed. 

It is therefore ordered. That Petitions of the Norfolk Southern 
Railroad Company (M. S. Hawkins and L. H. Windholz, Receivers) 
to discontinue passenger train service between Bridgeton and Oriental; 
between Edenton and the N. C.-Va. State Line; between Fayetteville 
and Varina; between Mackeys and Columbia; between Aberdeen and 
Asheboro; between Pinetown and Belhaven; and between Marsden 
and New Bern, be, and the same are, hereby granted. 

It is further ordered. That discontinuance of passenger train 
service between Marsden and New Bern herein granted is without 
prejudice to the rights of any party as to their liability under any 
contract. 

It is further ordered, That this authorization may be made 
effective on and after May 1, 1938. 

This 16th day of April, 1938. 

Stanley Winborne, 

Commissioner. 
Frank W. Hanft, 

Associate Com,m,issioner. 
By order of the Commission: 

R. O. Self, Chief Clerk. 

(Seal) 

Associate Commissioner Seely did not participate in these pro- 
ceedings. 

Dockets Nos. 1241, 1242, 1243, 1244, 1245, 1246, 1247. 



Decisions and Adjustments of Complaints 283 

PETITION OF NORFOLK SOUTHERN RAILROAD COMPANY (M. 
S. HAWKINS AND L. H. WINDHOLZ, RECEIVERS) FOR AU- 
THORITY TO DISCONTINUE PASSENGER TRAIN SERVICE 
BETWEEN RALEIGH AND CHARLOTTE. 

Order 
Appearances : 

L. P. Kennedy, General Superintendent, New Bern, N. C. for 
Petitioner. 

The petition of the Receivers of the Norfolk Southern Railroad 
Company for authority to discontinue its passenger service between 
Raleigh and Charlotte was filed with this Commission on March 21, 
1938, at which time others were filed to discontinue similar services 
between the following points: 

Bridgeton and Oriental 
Edenton, N. C. and Suffolk, Va. 
Fayetteville and Varina 
Mackeys and Columbia 
Aberdeen and Asheboro 
Pinetown and Belhaven 
Marsden and New Bern 

The petition now under consideration was docketed for hearing on 
April 8, 1938, but upon request of the Raleigh Chamber of Commerce, 
consented to by petitioner, hearing was postponed, and later reassigned 
for hearing on July 29, 1938, although the other petitions were heard 
in April and disposed of in our order of April 16, 1938 under Dockets 
Nos. 1241 to 1247, inclusive. 

In compliance with our Rules of Practice, notices were posted at 
each station served by these trains. 

Prior and immediately subsequent to the filing of the petition, a 
great deal of opposition was registered against discontinuance of this 
service. No one, however, appeared at the hearing to protest. On July 
27, 1938, the Board of Directors of the Raleigh Chamber of Commerce 
passed resolutions (1) withdrawing its objections and (2) endorsing 
the petition. Similarly, the Board of Directors of the Charlotte Cham- 
ber of Commerce passed a resolution endorsing the petition. 

Petitioner introduced as exhibits letters from the Mayor of Char- 
lotte and Mt. Gilead, as well as from O. C. Bruton & Son, at the latter 
point, stating that they do not object, nor do they know of any one 
objecting to the proposed abandonment. 

Issues of "The Plain Dealer" of July 21 and 28, a Hemp newspaper, 
emphatically stated that this move was favored by that town. 

Additionally, petitions containing the names of town officials and 
citizens in McCullers, Willow Springs, Duncan, Fuquay- Varina, Cor- 
inth, Colon, Gulf, Carbonton, Glendon, Hallison, Hemp, Star, Troy, 
Norwood, Oakboro, Stanfield, and Midland, were introduced, all of 
which stated that "we feel the Norfolk Southern needs and should be 
granted the relief requested." 

The passenger service requested to be withdrawn is performed 
by freight trains, the combination of which is classed or termed mixed 
trains. 



284 N. C. Utilities Commission 

The distance between Raleigh and Charlotte is 156 miles, practi- 
cally all of which is paralleled by hard surface highways over which 
six bus schedules are provided. There are a few points located on peti- 
tioner's line that are not immediately accessible to these highways but 
within 3 to 5 miles thereof. These schedules adequately serve the 
traveling public. 

The following statement shows the gross passenger revenue and 

actual expenses incident to the operation of passenger service between 

Raleigh and Charlotte, during the seven months period ended May 31, 

1938: 

7 Months Yearly Monthly Daily 

Income $ 712.93 $ 1,222.20 $ 101.85 $ 3.92 

Expenses 8,218.70 14,089.24 1,174.10 45.01 

Loss 12,867.04 1,072.25 41.09 

This shows, to illustrate, that it is costing petitioner actually $45.01 
per day to earn an average of $3.92. 

After deducting fixed charges from net operating income, deficits 
prevailed in the following amounts: 

1933 1934 1935 1936 1937 Total 

$703,183 $501,761 $577,372 $508,105 $572,730 $2,863,151 

For the seven months period ended May 31, 1938, petitioner's deficit 
was $615,284, an amount greater than for either of the entire years of 
1934 to 1937, inclusive. 

In dockets 1241 through 1247, discontinuance of passenger service 
elsewhere on petitioner's line, this Commission said: 

"Petitioner is exercising every effort at its command to effect 
economies and by discontinuing these services, it is felt that the 
entire line might be saved thereby rendering efficient freight serv- 
ice with view of holding intact some of its branches not now 
operating profitably. To abandon unprofitable branches at this 
time would greatly inconvenience shippers and receivers of freight 
in the communities or sections presently served by such. 

Prior to the construction of good highways which now form a 
network over the entire State, reaching every city and practically 
every town or community, there was public necessity for these 
passenger trains, but since the advent of our highways over which 
many bus companies operate, serving the public in many ways 
that cannot be performed by petitioner, it has become more 
convenient for the public to use this new transportation agency 
and as such has replaced petitioner's line as a public necessity. 

The record does not show that public convenience and neces- 
sity require the continuance of the trains sought to be abandoned. 
There appears, however, a necessity for the continuance of the 
lines over which these trains operate to serve the sections in 
which thy run in order that commodities may be marketed for 
the benefit of all. 

We find that the discontinuance of the passenger trains herein- 
before discussed will not result in any hardship on the public and 
the petitions should be allowed." 

Conditions at this time are not as favorable as they were earlier in 
the year by reason of the fact that passenger earnings have declined 
and expenses increased. It has been clearly shown that there is no 
necessity for rail passenger service between Raleigh and Charlotte 
and as the public will not be injuriously affected by the discontinu- 
ance of these trains the petition will be granted. 



Decisions and Adjustments of Complaints 285 

It is therefore ordered, That Petition of the Norfolk Southern 
Railroad Company (M. S. Hawkins and L. H. Windholz, Receivers) 
to discontinue passenger train service between Raleigh and Charlotte 
be, and the same is, hereby granted. 

It is further ordered, That this authorization may be made effec- 
tive on or after August 1, 1938. 

This 29th day of July, 1938. 

Stanley Winborne, 

Commissioner. 
By order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1248. 

APPLICATION OF SEABOARD AIR LINE RAILWAY (L. R. POW- 
ELL, JR., AND HENRY W. ANDERSON, RECEIVERS) TO DIS- 
CONTINUE ITS AGENCY AT ALMA, N. C. 

Order 

The above application, dated March 9, 1938, was filed through Chief 
Public Relations Officer, W. L. Stanley, who appeared at the hearing 
before the Commissioner on May 20, 1938. No one appeared in oppo- 
sition thereto. 

Notice to the effect that this application would be made was posted 
at Alma and remained posted for the period required by Rule 12- A of 
our Rules of Practice. 

The Maxton, Alma and Southbound Railroad, hereinafter referred 
to as MA & S, which operated between Alma and Rowland, was dis- 
continued on September 1, 1937. The Alma Agency prior to that time 
was operated jointly by the applicant and MA & S and it is contended 
that there is not sufficient business to warrant continuance of the 
Agency. 

During the eleven months period ending November 30, 1937, the 
gross revenue of the Alma Agency, excluding freight interchanged 
with the MA & S were $346.57, freight received; $516.64, freight 
forwarded; and passenger earnings of $32.10. Of these earnings less 
than carload traffic was insignificant. 

The Agent's salary is $60.00 monthly or $720.00 per year. Other 
expenses amount to approximately $10.00 per month. 

Alma is located on applicant's line between Hamlet and Wilming- 
ton. It is only 2.2 miles east of Maxton, a sizable town and the natural 
trading center for that territory. It was testified that there was never 
any local business at Alma, but according to an understanding with 
the MA & S, this line and applicant maintained a joint agency. It was 
decided to keep open the agency after the discontinuance of the 
MA & S with view of developing local business. This did not mate- 
rialize. 

Applicant's line is paralleled by a paved highway which runs 
within a quarter of a mile of the depot, and connects with county 
roads. 



286 N. C. Utilities Commission 

It is obvious that there is no public convenience and necessity for 
the station. Earnings have been and now are on the decline. For the 
first 4 months of 1938, the total inbound and outbound less than car- 
load business, consisting of 41 shipments, amounted to only $64.41. 

It is therefore, ordered, That Application of Seaboard Air Line 
Railway (L. R. Powell, Jr. and Henry W. Anderson, Receivers) to dis- 
continue the agency at Alma, be, and the same is hereby, approved. 

This 24th day of May, 1938. 

By order of the Commission: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1238. 

APPLICATION OF SEABOARD AIR LINE RAILWAY (L. R. POW- 
ELL, JR., AND HENRY W. ANDERSON, RECEIVERS) FOR AU- 
THORITY TO DISCONTINUE ITS AGENCY AT IRON, N. C. 

Order 
Appearances : 

W. L. Stanley and R. W. Rogers, for Applicants. 
By application dated October 7th, 1937, the Seaboard Air Line Rail- 
way (L. R. Powell, Jr., and Henry W. Anderson, Receivers) request 
authority to discontinue the agency at Iron, North Carolina. This mat- 
ter was docketed for public hearing in my office on November 10th, 
1937, at 10:30 o'clock A. M. No one appeared in opposition thereto. 

The freight and passenger earnings of applicant for the years of 
1934 to 1936, inclusive, are as follows: 

Freight Earnings Passenger Grand 

Received Forwarded Total Earnings Total 

1934 $1,268.71 $ 53.02 $1,321.73 $148.08 $1,469.81 

1935 779,26 171.68 950.94 146.15 1,097.09 

1936 532.73 260.53 793.26 179.19 972.45 

For the twelve-months' period ending August 31st, 1937, the gross 
earnings of applicant at this point were $144.70, the bulk of which 
was divided with other lines due to the fact that the traffic on which 
these charges were assessed moved over two or more lines. Only a 
small percentage of these earnings accrued from less-than-carload 
traffic. 

The present monthly salary of the agent is $60.00, which, when 
added to other expenses incidental to the operation of the agency, 
results in a total operation cost of approximately $75.00 to $80.00 per 
month. 

This point is located six and one-half miles east of Lincolnton, and 
is on a paved highway. Obviously, the patrons of applicant are in 
sympathy with the Receivers of the Seaboard Air Line Railway in 
this matter, as notice was posted on the station notifying the public 
that at the expiration of ten days, application would be made to me 
for authority to close the agency. 

From the testimony deduced at the hearing, it is my opinion that 
earnings do not justify the continuance of the agency. 

It is therefore ordered. That the Seaboard Air Line Railway 



Decisions and Adjustments of Complaints 287 

(L. R. Powell, Jr., and Henry W. Anderson, Receivers) be, and they 
are hereby authorized to discontinue the agency at Iron, North Caro- 
lina, effective on or after December 1st, 1937, and make the same a 
prepay point. 

This 10th day of November, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk ComTnissioner. 

Docket No. 1089. 

APPLICATION OF SEABOARD AIR LINE RAILWAY (L. R. POW- 
ELL, JR., AND HENRY W. ANDERSON, RECEIVERS) FOR AU- 
THORITY TO DISCONTINUE AGENCY AT POTECASI, N. C. 

Appearances: Order 

H. M. Terrell, Superintendent, and T. A. Norris, Trainmaster, 

for applicant. ^ 

R. V. Beale, C. E. Parker, and E. L. Doffermyre, for protestants. 

The above application, dated January 11, 1938, was filed by Chief 

Public Relations Officer, W. L. Stanley, and heard in the Commission's 

office on February 18, 1938. 

Potecasi is located in Northampton County on its Boykins branch 
and applicant contends that less than carload business handled thereat 
does not justify the expense of continuing it as an agency station. 

The revenue figures shown herein for all periods, except for 
December, 1937, and January, 1938, only include the Seaboard Air 
Line's proportion and do not include those parts accruing to connect- 
ing lines on joint traffic. 

Subjoined is a statement of freight earnings for the periods shown: 

Freight Earnings Passenger Grand 

Received Forwarded Total Earnings Total 

1934 $2,579.72 $774.94 $3,354.66 $12.52 $3,367.18 

1935 766.83 183.19 950.02 9.23 959.25 

1936 763.92 78.67 842.59 13.16 855.75 

7MOS.1937 626.07 6.81 632.88 .90 633.78 

llMos.1937 744.20 9.45 753.65 

December, 1937, and January, 1938, earnings, representing' total 
revenues, were $76.42, of which $2.90 portrayed ticket sales. 

The salary of the agent is $60.00 per month, or $720.00 per annum, 
being slightly less than earnings accrued to applicant for the entire 
year of 1937. 

There has been a considerable drop in earnings at Potecasi since 
1934, for which year its total revenues were $3,367.18, compared with 
less than $800.00 for 1937. Applicant also offered the following figures 
which show almost a complete diminution of earnings since 1929: 

Year Freight Passenger 

1929 $6,921.14 $104.25 

1930 7,967.09 60.00 

1931 4,205.40 38.01 

1932 5,415.15 9.72 

1933 3,767.94 16.30 

1934 3,354.66 12.52 

1935 950.02 9.23 

1936 842.59 13.16 



288 N. C. Utilities Commission 

Considering the condition of the branch line on which Potecasi is 
located, it was testified that as a whole applicant is about breaking 
even which is due to a large movement of logs, but that were it not for 
such movement, application would be made to abandon the branch. 

Protestants admit, from a financial point of view, that the agency 
is unprofitable but it is thought that the management is responsible. It 
is contended that the agent recognizes no particular time for opening 
and closing his office, thereby greatly inconveniencing applicant's 
patrons. 

Objections were registered against making the station a prepay 
point because all less than carload freight arriving for delivery would 
be placed in the depot without being locked, making it susceptible 
to pilferage or to be taken by other than the rightful owner or owners. 
Moreover, due to the fact that the train apparently has no regular 
schedule, a receiver never knows when he can get his freight. 
Protestants believe with a good agent in charge, the station could be 
placed on a paying basis, because it is adjoining or amid a fine farming 
section. 

It was believed, due to the irregularities in office hours and train 
schedules during the past two years, that business and earnings in- 
creased at Conway which would reveal that Potecasi's traffic had been 
diverted to and through that agency. Conway is about six miles from 
Potecasi and applicant supplied the following freight earnings at 
Conway for the years named: 

1929 $69,675.23 1933 $26,196.27 

1930 59,334.54 1934 40,781.08 

1931 46,555.72 1935 46,994.05 

1932 26,760.27 1936 43,483.24 

While it could not be definitely stated, it was believed that business 
at Potecasi began falling off in 1936 due to a seeming diversion to the 
Conway station, but it will be observed that freight revenues at this 
point for the year of 1936 was $107.43 under 1935, whereas freight 
revenues at Conway in 1936 declined $3,510.81 from the year of 1935 
which indicates that the traffic was not there or if there, had been 
diverted to the highways. Motor vehicle carriers have made great 
inroads in the rail carriers' business during the past several years 
because of better service, pickup and delivery at most any point, and 
less cost to the shipper and receiver. A great volume of this traffic 
has been definitely lost to the rail carriers. 

It is not the wish of this Commission to close any station. To do 
so relieves men of work and takes the convenience away from the 
people. However, it is necessary to decide these cases according to 
their merits. 

Doubtless, it would be better for all communities if unprofitable 
agencies are discontnued n order to save the rail lines serving them. 
It cannot be thought that applicant's patrons would insist on retention 
of such unprofitable agencies and take a chance of losing the entire 
line through abandonment proceedings. At the present time there is 
an application pending for authority to remove passenger train service 
between Boykins and Lewiston, the line on which Potecasi is located. 



Decisions and Adjustments of Complaints 289 

Considering the matter from various standpoints, it is found that 
the application has been justified but in order that this community- 
may not at this time be deprived of every convenience, it is also found 
that the revenues are sufficient to warrant the employment of a care- 
taker in lieu of an agent. 

It is therefore ordered, That applicant, Seaboard Air Line Rail- 
way (L. R. Powell, Jr., and Henry W. Anderson, Receivers), be, and 
they are hereby, authorized to close the agency at Potecasi and make 
same a prepay point, effective on or after April 1, 1938. 

It is further ordered, That a caretaker shall be provided in lieu 
of the agent pursuant to the opinion herein reached. 

This 15th day of March, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. - Commissioner. 

Docket No. 1196. 

APPLICATION OF SEABOARD AIR LINE RAILWAY (L. R. POW- 
ELL, JR., AND HENRY W. ANDERSON, RECEIVERS) FOR 
AUTHORITY TO DISCONTINUE AGENCY AT SEVERN, N. C. 

Order 
Appearances : 

H. M. Terrell, Superintendent, and T. A. Norris, Trainmaster, for 
applicant. 

Application of L. R. Powell, Jr., and Henry W. Anderson, Receivers, 
of the Seaboard Air Line Railway dated January 11th, 1938, for 
authority to discontinue their agency at Severn, N. C, making it a 
prepay station, was heard in the office of the Commission on February 
18th, 1938, at which no one appeared in opposition thereto. 

The agent's salary of $780.00 per annum comprises practically all 
of the expenses of the agency. The incidental expenses, applicant 
testified, amount to no more than $25.00 yearly. 

Freight earnings of the Seaboard Air Line Railway in 1936 dimin- 
ished to $720.78 from approximately $25,000.00 for the year 1929. 

The total revenue for December, 1937, and January, 1938, amounted 
to $152.88. Of this, $115.50 covered inbound shipments, $33.68, out- 
bound, and $3.70 passenger fares. This is equivalent to $76.44 per 
month and does not indicate any appreciable difference in revenue 
of previous years. 

For the first eleven months of 1937 applicant's freight revenue 
amounted to $954.61 which, of course, was slightly better than 
earnings for the year 1936. 

In Docket No. 1167, discontinuance of service at Jackson Springs, 
N. C, we said: 

"If public convenience and necessity require the construction 
of a railroad, it must, of course, receive revenues that will yield 
a fair return on its investment. If losses are sustained in the 
operation of any line due to continued declines in commerce, and 
economies have been applied to the fullest extent, as appears to 



290 N. C. Utilities Commission 

be the case here, it necessarily follows that public convenience 
and necessity no longer require the line. 

"It is certainly not the desire or wish of this Commission to 
close any station, or to take away from the people any service, no 
matter how slight, and it is with great reluctance that orders are 
made allowing stations to be closed or service to be withdrawn but, 
nevertheless, it is faced with facts it cannot ignore and therefore, 
in light of the testimony and evidence, the conclusion that the 
service should be discontinued is inescapable." 

It is my opinion that this is a similar case and that application has 
been justified. 

It is therefore ordered. That the Seaboard Air Line Railway 
(L. R. Powell, Jr., and Henry W. Anderson, Receivers), may dis- 
continue its agency at Severn, N. C, and make same a prepay point 
to become effective not earlier than March 1, 1938. 

This 25th day of February, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1197. 

APPLICATION OF SEABOARD AIR LINE RAILWAY (L. R. POW- 
ELL, JR., AND HENRY W. ANDERSON, RECEIVERS) TO DIS- 
CONTINUE PASSENGER TRAIN SERVICE BETWEEN FRANK- 
LINTON AND LOUISBURG. 

Order 
Appearances : 

W. L. Stanley and H. M. Terrell for applicant. 

Application of the Receivers of the Seaboard Air Line Railway 
for authority to discontinue passenger train service between Frank- 
linton and Louisburg was heard before me on July 17, 1938. 

Notices were posted at these two points by applicant of its intention 
to apply for authority to abandon this service, and said notices 
remained posted for a period of ten days as required by Rule 12- A 
of our Rules of Practice and Procedure. 

No one appeared in opposition to this abandonment. 

At the present time the local freight trains operating between 
Raleigh and Henderson digress at Franklinton and run over to Louis- 
burg and back, handling, in its cabooses, passengers between these 
two points. No passenger coach is provided. 

During the year of 1937 passenger earnings from this service 
amounted to only $51.00, equivalent to one cent per train mile. Due 
to the character of these operations it is not possible to break down 
the costs of handling passengers. 

The only out-of-pocket savings that can be calculated amount to 
$50.00 per annum, $35.00 of which cover building maintenance and 
$15.00 fuel and lights for station. 

The discontinuance of handling passenger business on this branch, 
it is contended, will enable applicant to revise its freight schedules 
and thereby render better freight service. Doubtless, with more fre- 



Decisions and Adjustments of Complaints 



291 



quent bus schedules and the use of private cars traveling over the 
State's network of highways, freight service is of greater value to the 
towns of Franklinton and Louisburg. 

It is believed to be in the interest of the public to allow the applica- 
tion, as there is no longer a public necessity requiring the continuance 
of the service. 

While there does not appear to be any saving to result therefrom, 
freight can be handled on revised and more expedient schedules. 

It is therefore ordered, That application of Seaboard Air Line 
Railway (L. R. Powell, Jr., and Henry W. Anderson, Receivers) for 
authority to discontinue passenger service between Franklinton and 
Louisburg be, and the same is, hereby granted. 

This 20th day of June, 1938. 



By order of the Commigsion: 

R. O. Self, Chief Clerk. 
(Seal) 
Docket No. 1291. 



Stanley Winborne, 

Commissioner. 



APPLICATION OF SEABOARD AIR LINE RAILWAY (L. R. POW- 
ELL, JR., AND HENRY W. ANDERSON, RECEIVERS), TO DIS- 
CONTINUE PASSENGER SERVICE BETWEEN LEWISTON, N. C, 
AND BOYKINS, VA. 

Order 
Appearances : 

W. L. Stanley and H. M. Terrell, for applicant. 

The above application, which seeks to discontinue passenger train 
service between Lewiston, N. C, and Boykins, Va., was heard before 
me on June 17, 1938, pursuant to public notice issued on May 25, 1938. 

Pursuant to Rule 12- A of our Rules of Practice and Procedure 
applicant posted notices at each of the stations served by trains 23 and 
24, desired taken off, which remained posted for a period of 10 days. 
No one, however, appeared in opposition to the proposal. 

At the present time a passenger coach is handled by freight trains 
to accommodate any passengers who may wish to travel by applicant's 
line. 

The total passenger earnings for these two trains for the year of 
1937 amounted to $315.00, or an average of $1.01 per day, and for the 
first five months in 1938, the passenger earnings were $103.00, an 
average of 80 cents per day. 

Should this coach be removed, there would be, it was testified, 
an annual saving of $2,808.42. This includes the substitution of a 
caboose in these trains, and all costs and savings are clearly shown 
in the following table: ^^^^ ^^^.^^^ 

Crew Wages $1,549.37 

Fuel: Coach $267.18 

Caboose 166.84 

100.34 

Coach Repairs 886.81 

Caboose Repairs 148.88 

737.93 



292 N. C. Utilities Commission 

Train Supplies and Expenses (Stoves, etc.) : 

Coach 85.94 

Caboose 29.25 

56.69 

Cost of Maintaining Waiting Rooms, etc 250.00 

Supplies, Expenses, viz: Tickets, Reports, etc. 25.00 

Reduction in Railroad Retirement and Social 

Security Taxes 89.09 

Net Savings per annum in Operating Expenses $2,808.42 

By deducting from this total of $2,808.42, passenger revenue of 
$248.80, based on actual revenue for first five months of 1938, the 
actual amount applicant would save is $2,559.62 per year. 

Of course, these items of savings would be unimportant were the 
service one of public necessity which, in turn, and the convenience 
thereof, would justify the Seaboard Air Line Railway to continue the 
present service, if not something much better. In the absence, however, 
of a public need for passenger service on this branch these items 
become important ones for the reason that the Seaboard Air Line has 
been in receivership since 1930, and in no year since the beginning 
of the depression has it been able to show a profit. It has been impos- 
sible for it to meet its fixed charges. 

It has been clearly shown that there is no demand for passenger 
train service between Lewiston, N. C, and Boykins, Va., and its 
convenience heretofore has not been used by the public. The applica- 
tion, in so far as the mileage in North Carolina is concerned, has been 
justified. 

It is therefore ordered, That application of the Seaboard Air 
Line Railway (L. R. Powell, Jr., and Henry W. Anderson, Receivers) 
for authority to discontinue passenger train service between Lewiston, 
N. C, and the Virginia State Line, be, and the same, is hereby granted. 

This 20th day of June, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 96. 

PETITION OF SEABOARD AIR LINE RAILWAY (LEGH R. POW- 
ELL, JR., AND HENRY W. ANDERSON, RECEIVERS) TO DIS- 
CONTINUE PASSENGER TRAINS NOS. 19 AND 20 OPERATING 
BETWEEN RALEIGH, N. C, AND RICHMOND, VA. 

Order 
Appearances: 

W. L. Stanley, Atlanta, Ga., for Petitioner, and 
W. B. Beasley, Henderson, N. C, for Rose's 5-10-25c Stores, 
Protestant. 

This cause was heard by the Commissioner on May 20, 1938, 
pursuant to Rule 12- A of our Rules of Practice. Notices were posted 
at all stations in North Carolina along the line over which these trains 
operate. 

Approximately four years ago petitioner operated trains 3 and 4, 



Decisions and Adjustments of Complaints 293 

between Richmond and Raleigh, as locals, but in order to expedite 
the movement of those trains, which consisted largely of through 
express and mail, authority was granted to discontinue them in local 
service and substitute trains 19 and 20, for local work, now sought 
to be removed. 

Nos. 19 and 20 are motor trains, consisting of a motor and trailer, 
the first leaving Richmond, Va., at 7:15 A. M. and arriving Raleigh 
at 12:25 P. M.; the latter leaving Raleigh at 4:20 P. M., arriving 
Richmond, Va., 8:50 P. M. 

Petitioner's representative testified that earnings have fallen off 
to such an extent that it has been found necessary to curtail expenses 
wherever it is possible to do so, and especially to dispense with services 
not self-sustaining. 

For the year of 1937, train No. 19 operated a total of 57,412 miles. 
The passenger earnings amounted to $5,143; express, $3,809; mail 
earnings, $2,091, or an average of 19.2 cents per train mile. The 
earnings from train No. 20 for 1937 were: Passenger, $8,045; express, 
$2,539; mail earnings, $1,932; or a total of $12,516, averaging 21.8 
cents per train mile. 

There was no material difference in earnings of these trains for 
the first two months of 1938. 

Statistics were also offered showing the number of passengers 
traveled in these trains in intrastate commerce from North Carolina 
stations and the revenue accruing therefrom for a period of 20 days 
as to train No. 19 and 19 days as to train No. 20. During this period, 
train No. 19 handled 344 passengers with revenue of $82.10. Train 
No. 20 handled 352 passengers with revenue of $104.00. 

Operating costs were presented covering period from October 1, 
1937, to April 30, 1938, and includes wage rate changes. Due to failure 
of the motor car, it is necessary to substitute steam trains for approxi- 
mately 7 days each month. The total out-of-pocket expenses for 
operating the motor train is 42.6 cents per train mile compared with 
68.2 cents per train mile to operate the steam train. The total out-of- 
pocket expenses of the motor car for the period in question was 
$3,095.60 per month, which includes crew wages, gasoline, motor car 
cylinder oil, repairs, engine house expenses, train supplies and union 
station expenses. Expenses of the steam train for the same period 
amounted to $1,508.07 per month, comprised of similar items of cost, 
but substituting coal, locomotive repairs, locomotive supplies and 
lubrication for gasoline, motor car and cylinder oil and repairs to 
motor car and trailer. The total monthly out-of-pocket expenses for 
the operation of both steam and motor trains between Richmond and 
Raleigh is $4,603.67, equal to 48.5 cents per train mile or nearly 
21/2 times the revenues derived therefrom. 

Witness, W. B. Beasley, representing Rose's 5-10-25c Stores, Hen- 
derson, N. C, and the only person opposing the discontinuance of these 
trains, testified, first, as a citizen primarily interested in passenger 
schedules and, second, from a business standpoint, in express service 
performed by the trains in question. There was, however, no testimony 
offered with respect to passengers. 



294 N. C. Utilities Commission 

Protestant is a shipper of general merchandise, chiefly, and relies 
on this service to points located in the Valley of Virginia. Daily 
express shipments are assembled in its warehouses at Henderson and 
forwarded on train No. 20 passing there at 5:38 P. M., arriving Peters- 
burg, Va., at 8:08 P. M., where they are transferred to Norfolk and 
Western Train No. 15 leaving at 11:10 P. M. This affords next morning 
delivery. 

During representative months of April, June, September, and 
November, 1937, protestant forwarded 2,316 shipments of express to 
its stores in the Valley of Virginia, consisting of 18,768 packages, 
weighing 578,772 pounds. Approximately 70% of this commerce was 
transported by train No. 20. 

Petitioner proposes to place trains 3 and 4 in local service between 
Raleigh and Richmond, being practically the same service prevailing 
prior to the inauguration of trains Nos. 19 and 20, four years ago. It 
is proposed that train No. 3 leave Richmond at 12:01 P. M. and arrive 
Raleigh at 4:55 P. M.; train No. 4 to leave Raleigh at 12:33 P. M. and 
arrive Richmond at 5:10 P. M. 

It is contended by protestant that due to its method of distribution, 
preparation cannot be made to get its express on train No. 4 passing 
Henderson at 1:51 P. M. and, necessarily, will meet with a 24-hour 
delay in delivery at destinations. Such express shipments will move 
from Henderson on either trains 2 or 6, passing after midnight, connect 
with Norfolk and Western Train, No. 23 leaving Petersburg at 11:30 
A. M. and delivered at destinations the following morning. Therefore, 
in order to maintain destination schedule or delivery, protestant would 
have to revise its method of distribution should trains Nos. 19 and 20 
be discontinued. 

Petitioner was placed in the hands of receivers on December 23, 
1930, and in no calendar year since that time, it was testified, has the 
Seaboard Air Line Railway earned a sufficient amount of money to 
meet its fixed charges. Its smallest deficit has been about four million 
dollars, its largest, eight million dollars. For the first four months of 
1938, petitioner's gross earnings, compared with same period in 1937, 
have decreased approximately 10%. The out-of-pocket loss sustained 
in the operation of these trains is in excess of $25,000 yearly. 

These trains were established in an effort to give the public better 
service, but due to present conditions and the failure of the people 
to respond to this new service, it is obvious there is no public necessity 
requiring their continuance. Protestant, Rose's 5-10-25c Stores, may 
be slightly inconvenienced, at first, in the distribution of its express 
movements, but by a change in the method of shipping, this incon- 
venience can, in the opinion of the Commissioner, be removed. 

It is found that the discontinuance of these trains, only in so far as 
the mileage in North Carolina is concerned, will not injuriously affect 
the public. The petition should be granted. 

It is therefore ordered, That petition of the Seaboard Air Line 
Railway (L. R. Powell, Jr., and Henry W. Anderson, Receivers) for 
authority to discontinue passenger trains Nos. 19 and 20, operating 



Decisions and Adjustments of Complaints 295 

between Raleigh, N. C, and Richmond, Va., only in so far as the 
mileage in North Carolina is concerned, be, and the same is hereby, 
granted. 

This 8th day of June, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1292. 

DISCONTINUANCE OF ARDEN AS AN AGENCY STATION. 

Order 

Appearances: 

Wm. T. Joyner and H. E. Powers, for applicant. 

The Southern Railway Company, by application dated March 22, 
1938, sought to close the agency at Arden and make same a prepay 
point. Notice was posted by applicant on March 12, 1938, and re- 
mained posted for a period of 10 days as required by Rule 12- A of 
this Commission's Rules of Practice and Procedure. 

For a period of 25 months, from February 1, 1936, to February 
28, 1938, the gross earnings from business handled through the Arden 
agency are as follows: 

Freight Received — Carloads $6,073.21 

Freight Forwarded — Carloads 3,815.65 

Total Carload Earnings $9,888.86 

Freight Received — Less Carloads $2,506.58 

Freight Forwarded — Less Carloads 354.23 

Total Less Carload Earnings $2,860.81 

From January, 1937, to March, 1938, the express revenue amounted 
to $1,456.11, with express money order sales amounting to $453.13. 

Ticket sales for a period of 2 years amounted to $549.20. 

Quite a number of protests were filed and the application came 
on for hearing in the office of the Commission at 10:00 o'clock, June 
21, 1938, at which letters from those previously protesting against the 
closing of this station (with one exception) were offered withdrawing 
their objections, provided an express agent was retained, who would 
also serve as caretaker for applicant. The Asheville Chamber of Com- 
merce (the exception above referred to), on June' 20, telegraphed that 
the "residents of Arden Section and Southern Railway officials have 
reached agreement regarding service that point and this organization 
desires record our concurrence." 

No one appeared at the hearing in opposition to the proposal. 

The nearest open station which would govern Arden in the event 
the compromise between applicant and protestants is effectuated, is 
Fletcher, located 2.8 miles south thereof. 

While the less than carload business for the period referred to has 
averaged only approximately $114.00 monthly, the earnings from car- 
load traffic have averaged nearly $400.00 monthly. For the year ended 
May 31, 1938, however, the monthly average of both carload and 
less than carload business was approximately $393.00. This Commis- 



296 N. C. Utilities Commission 

sion has never looked with favor on the closing of agencies having 
revenues sufficient to warrant their continuance. It has been our view 
that to close profitable stations, the public would be inconvenienced, 
it appearing there is a necessity or demand for the service as wit- 
nessed by the large business handled considering the size of the place. 

Notwithstanding this, protestants have agreed with applicant that 
this station be closed with the understanding that an express agent is 
provided who will also serve as caretaker for the railroad company. 
This Commission, therefore, approves this arrangement without preju- 
dice to the rights of the public to request reinstatement of the rail- 
road agent upon a showing that improvements over a period of 12 
months or longer have been made in business at that point. Our ap- 
proval, however, is not to be construed as establishing a precedent for 
adjudication of subsequent similar matters. 

It is therefore ordered, That the application of Southern Rail- 
way Company for permission to close its station at Arden, be, and 
the same is, hereby approved, provided that an express agent — care- 
taker be maintained in accordance with an agreement between prot- 
estants and applicant and consented to by the latter at the afore- 
mentioned hearing. 

This 23rd day of June, 1938. 

By order of the Commission: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1256. 

IN THE MATTER OF DISCONTINUANCE OF THE AGENCY AT 
BRIDGEWATER. 

Order 
Appearances: 

H. E. Powers, Attorney, Raleigh, N. C. for 

Southern Railway Co. 
J. R. Sowell, Greensboro, N. C, for 

Railway Express Agency; and 
G. W. Saunders, Greensboro, N. C, for 
Western Union Telegraph Company. 

This proceeding arises on application filed on July 7, 1938, by the 
Southern Railway Company, seeking authority to discontinue its 
agency at Bridgewater. As the agent of the Railway Company acts 
also as agent for the Railway Express Agency and the Western Union 
Telegraph Company, these companies applied for similar relief in the 
event the Railway Company's application is granted. 

Pursuant to Rule 12- A of our Rules of Practice, notices were 
posted at the station and many letters, and two petitions containing 
the names of approximately 300 citizens and patrons of applicants at 
Bridgewater and vicinity protesting against this proposal, were re- 
ceived. These applications were heard by me on September 20, 1938. 
No one appeared at the hearing in opposition to the action. 

The application of the Southern Railway, when filed, had ap- 
pended thereto a statement showing total freight revenue earned on 



Decisions and Adjustments of Complaints 297 

shipments received at and forwarded from Bridgewater for two periods 
of 12 months each, ended April 30, 1937, and April 30, 1938, which 
I have condensed and show below: 

Received Forwarded 

Year Carload L. C. L. Carload L. C. L. Total 

1936-1937 $390.22 $614.11 $1,110.68 $59.34 $2,174.35 

1937-1938 76.00 472.01 2,214.66 13.27 2,775.94 

There was a considerable decline in carload traffic fo-^^^ — lo^^ '•f^'^B 
under 1937, but a substantial increase in carload freight forwarded. 
The less than carload freight declined approximately 30 per cent. For 
the period from January 1, 1937, to June 27, 1938, nearly 18 months, 
99 cars of wood were shipped from this station, all of which moved 
with charges to be collected at destination. This constituted a goodly 
portion of carload shipments forwarded since January 1, 1937, the 
charges on which amounted to about $1,500.00. In view of the fact 
charges were billed "collect" shippers would be inconvenienced very 
little, it is contended, if Bridgewater, with a population of about 60 
people, is made a non-agency point. 

For the first year reported, ended April 30, 1937, ticket sales 
amounted to $120.24, and for the second year, ended April 30, 1938, 
$125.49, an increase of $5.25. The combined freight and passenger 
revenues for these two years amounted to $5,196.02, or a monthly 
average of $216.50. The cost of maintaining the station was $3,219.79, 
or a monthly average of $134.15, resulting in a monthly profit of 
$81.85, sufficient to continue Bridgewater as an agency station. Since, 
however, there is both an origin and destination on all shipments, 
these gross receipts must necessarily be divided on a 50-50 basis to 
reflect proper credit due at the other end of the line. By doing so, 
Bridgewater's proportion of the freight earnings would amount to 
$2,475.15, or $744.64 less than enough to break even. Moreover, the 
total earnings reported, as above stated, are gross and include por- 
tions which accrued on traffic originating and terminating on connect- 
ing railroads. Illustrative of the fact that business has been on the 
decline, resulting in lower earnings, additional figures were submitted 
at the hearing for the months of May, June, July, and August, 1938, 
as follows: 

Freight Freight Ticket 

Month Received Forwarded Sales Total Expenses 

May $23.31 $ 62.53 $ 3.35 $ 89.19 $136.00 

June 22.36 15.12 4.10 41.58 141.44 

July 22.18 15.00 7.65 44.83 136.00 

August 7.11 31.47 . 2.75 41.33 146.88 

Total $74.96 $124.12 $17.85 $216.93 $560.32 

The total passenger and freight earnings of $216.93 for these four 
months, averaging $54.23 per month, shows a drastic decline compared 
with $216.50, the monthly average for the 24 months' period herein- 
before reviewed. The expenses increased, averaging $140.08, or ap- 
proximatly $6.00 per month more than the average for the previous 
2 years. 

The express earnings from January 1, 1937, to May 31, 1938, 



298 N. C. Utilities Commission 

amounted to $459.90, which averaged $27.05 per month. During June 
and July, 1938, express revenues were $14.00 and $7.39, respectively, 
reducing the monthly average to $25.33. It is stated that it would be 
impossible for the Railway Express Agency to secure an agent at 
Bridgewater if the Southern Railway's office is closed, even though 
the latter company, on July 20, 1938, amended its application to 
maintain a caretaker thereat and that the express business heretofore 
handled will be managed under an arrangement and agreement with 
the express company. In other words, the caretaker would also rep- 
resent the express company and handle all express shipments in the 
manner now being handled by the present agent. The express com- 
pany does not concur in this and, therefore, requests relief therefrom 
and that it be given the same privilege as the Railway Company. 

For a period of 12 months ended July 31, 1938, the Western Union 
Telegraph Company averaged only $2.41 monthly from commercial 
telegraph service rendered Bridgewater. This company could not be 
expected to maintain an office and an operator, with such meager 
earnings, if the railway agency is discontinued. 

Protestants, in their letters to me, state that this move, if ap- 
proved, will be a decided blow to Bridgewater and the surrounding 
community, and that all would be handicapped by the proposed 
change. It is urged that this question is of vital importance to those 
citizens. 

Bridgewater is located in Burke County midway between Glen 
Alpine and Nebo, each being agency stations situate 5 miles each and 
west thereof. A highway runs within a half mile of the station and 
applicant asserts that any business that cannot be conveniently han- 
dled at Bridgewater, if closed, may be carried to either of these 
agencies with very little inconvenience to its patrons. It is not pro- 
posed to discontinue the stopping of trains. Passengers would pay 
their fares to train conductors without any increase. 

In Docket No. 1352, discontinuance of the Agency at Willits, which 
application was heard also on September 20, 1938, and decided Sep- 
tember 21, 1938, I said: 

"The Southern Railway Company is in a precarious condition, 
financially, and by necessity must economize wherever possible. 
It is faced with the problem of removing all unprofitable opera- 
tions, which is essential to its continued existence as a public 
servant. It cannot be expected to render good service demanded 
by the general public if it is required to absorb losses that can 
be avoided. The loss sustained by applicant at Willits from month 
to month and year to year seems small when compared with the 
size of the railroad, but it is a multiplicity of such small losses 
and the diversion of traffic to motor vehicle carriers that have re- 
sulted in the filing of applications for relief. 

"Millions of dollars have been borrowed from the Federal 
Government for the purpose of purchasing equipment, meeting 
its bond interests, and other obligations. The company's revenues 
have been insufficient to meet these requirements. Its operating 
costs have drastically increased." 

It is an unpleasant task to authorize that facilities which a com- 
munity has enjoyed for years be taken from it, but after considering 



Decisions and Adjustments of Complaints 299 

this application thoroughly, it being clear that the Railway Company 
is losing money, thereby affecting the entire railway ssytem, and it 
appearing that the patrons of the applicant, small in number, will 
not be injured, and it further appearing that public necessity and con- 
venience no longer requires the station, the application will be granted, 
provided, a caretaker is placed in charge to give protection to less 
than carload freight inasmuch as the earnings thereon are sufficient 
to warrant this service. The station will be made a prepay point. 

f|T IS, HEREFORET, ORDERED, That the application of the Southern 
Railway Company for authority to discontinue its agency at Bridge- 
water be, and the same is, hereby granted; 

It is FURTHER ORDERED, That a caretaker be provided pursuant to 
the opinion hereinabove expressed; 

It is further ordered, That the application of the Railway Ex- 
press Agency for authority to discontinue its express agency be, and 
the same is, hereby granted; and 

It is further ordered. That the application of the Western Union 
Telegraph Company for authority to discontinue commercial tele- 
graph service be, and the same is, hereby granted. 

This 11th day of October, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1351. 

SOUTHERN RAILWAY COMPANY FOR AUTHORITY TO DISCON- 
TINUE AGENCY AT BULLOCK, N. C. 

Order 
Appearances : 

Mr. Z. L. Mobley, Superintendent, and L. F. Logan, Trainmaster, 

for applicant. 
Mr. W. H. Holmes, for Order of Southern Railway Telegraphers, 
protestant. 

The above application, dated December 13, 1937, was heard in the 
office of this Commission on February 18, 1838. 

Witness Logan offered certain figures compiled by applicant's 
Auditor's office in Atlanta, which reveal that for a period of 12 months 
from September, 1934, through August, 1935, the less than carload 
business forwarded from Bullock was $4.95, of which $3.95 was collect. 
The revenue on less than carload traffic received was $286.99, of 
which $187.13 was collect business. 

For the following periods, September, 1935, through August, 1936, 
and September, 1936, through August, 1937, less than carload freight 
handled at Bullock was less, being as follows: 

Forwarded Received 

Period Collect Prepaid Collect Prepaid 

9-1-35 through 8-31-36 $3.69 $0.50 $154.18 $74.00 

9-1-36 through 8-31-37 5.13 2.50 173.00 44.64 

It appears that Mr. Chas. G. Royster is the largest receiver and 



300 N. C. Utilities Commission 

shipper of less than carload freight, the nature of his shipments being 
general merchandise and tires. Out of a total of 246 small quantity 
shipments in one of these periods this patron received 154 or 62% 
thereof, amounting to $164.83 or 56% of the total. 

The total carload, less than carload, and passenger revenues accru- 
ing to applicant for the three periods ending August 31, 1935, 1936, 
and 1937 amounted to $2,760.15, $1,378.82, and $3,090.67, respectively, 
the carload shipments included, comprised principally of firewood, 
logs, switch ties, pine piling and poles. 

Mr. C. T. Hester, formerly agent at Stovall, who has been trans- 
ferred to another agency, was also a shipper of lumber and lumber 
products in carload quantities from Bullock. It is indicated that this 
business will not move in the future. 

For the year ending with August, 1936, as will be observed from 
the foregoing, applicant's proportion of the total revenues amounted 
to only $1,378.82, being approximately half the amount in the previous 
year and much less than half for the subsequent period. In the opinion 
of the witness this was caused by the fact that Mr. Hester was not as 
active in the lumber business from Bullock but shipped more from 
Stovall, an adjacent station. 

For a five months' period, September, 1937, to January, 1938, 
inclusive, the total carload and less than carload business, including 
connecting lines' proportion, is shown below: 

Forwarded Received 

September, 1937 None $ 25.21 

October, 1937 None 26.09 

November, 1937 $10.99 33.07 

December, 1937 108.50 20.15 

January, 1938 226.99 9.43 

Total $346.48 $113.95 

Passenger revenue during this five months' period amounted to 
only $8.15, or a grand total of $468.58. 

The salary of the agent at Bullock, a non-telegraphic station, is, 
and has been since August, 1937, $85.20 monthly or $1,022.40, annually. 

The nearest station to the one in issue, located on a State hard- 
surface highway, is Stovall, located 3.3 miles South thereof. 

Inasmuch as the less than carload business handled at this station 
is very small, and the fact that applicant's carload patrons will not 
appear to be injured by closing the agency at Bullock, it is believed 
the record justifies this action, provided a caretaker is employed to 
protect less than carload shipments, which applicant is willing to do. 

It is therefore ordered, That the applicant, Southern Railway 
Company, be permitted to close its agency at Bullock and make same 
a prepay point to become effective on or after April 1, 1938. 

It is further ordered, That applicant shall provide a caretaker in 
lieu of the agent herein authorized discontinued. 

This 14th day of March, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1170. 



Decisions and Adjustments of Complaints 301 

IN THE MATTER OF DISCONTINUANCE OF DONNAHA AS AN 
AGENCY STATION. 

Order 
Appearances : 

H. E. Powers and W. T, Joyner, for Southern Railway Com- 
pany, applicant. 
J. R. Sowell, for Southeastern Express Company, applicant. 
G. W. Saunders, for Western Union Telegraph Co., intervener. 
W. H. Holmes, for Order of Railroad Telegraphers, Protestant. 

Petitions of Southern Railway Company and Southeastern Express 
Company for authority to close the agency at Donnaha and make same 
a prepay point were heard in the office of the Commission on June 21, 
1938. Notices were posted at that station in accordance with Rule 12-A 
of our Rules of Practice and Procedure. 

The agent of the railway company acts as agent of the express 
company and as Donnaha is a telegraph office, the Western Union 
Telegraph Company intervened in behalf of the applicants. The rail- 
road agent receives a commission from the express and telegraph 
companies for the handling of express and telegrams. 

The following is a statement of revenues accruing from freight and 
passenger traffic at this point for the year of 1937: 

Southern Rwy. 
Gross Proportion 

L. C. L. Freight $ 527.40 $ 404.18 

C. L. Freight 3,461.57 3,305.69 

Passenger 44.44 

Carload traffic consists principally of fertilizer, practically all of 
which moves before the month of June. Consequently from June to 
December of each year business handled by this agency is very light. 

From January to May, inclusive, of this year, the total railway 
freight earnings amounted to $1,379.80 with passenger earnings of 
$5.45. This indicates that the similar period of 1937 was very much 
better than in 1938. 

The earnings of the express company for 1937 amounted to $251.01, 
of which $147.92 accrued to other carriers leaving an operating revenue 
of $103.09, or, after paying a commission of $90.00 to the railway 
agent, a profit of $13.09 for the year. 

The witness for intervener. Western Union Telegraph Company, 
testified that its gross revenues for the year ended May 31, 1938, were 
only $24.99, averaging $2.08 monthly and that if the agency were 
closed it would be necessary that a telegraph office be opened, costing 
no less than $75.00 monthly, unless relief is also granted to that 
company. 

The expenses of the station, including salary of the agent, amount 
to $1,599.68 annually. In an effort to minimize the expenses of and 
retain the agency, the Order of Railroad Telegraphers, in January, 
1938, agreed to a rate of $80.20 per month as the salary of the agent. 
Applicant, Railway Company, obviously was unwilling to accept same. 

Prior to the hearing on these applications protests by letters were 



302 N. C. Utilities Commission 

received from patrons of applicants residing in and doing business at 
East Bend, a town of approximately 600 people located six miles from 
Donnaha. The former, however, is not located on the railway, but 
Donnaha is the governing agency for freight and express originating 
at and destined to East Bend. No protests were received from anyone 
in Donnaha. 

While Donnaha is not located on a highway, it is near one and is 
not isolated as is more or less the case with the Town of Rockford, 
another station requested to be closed. Most of the carload freight, 
however, consisting principally of fertilizer movements, in season, 
arrives prepaid and it is not believed that the closing of the station 
will inconvenience such receivers. The other freight is not sufficient 
to require the present expense of the agency but is sufficient to require 
the establishment of a caretaker. Passengers would not be put to any 
inconvenience if required to pay fares directly to the conductor. 

The application has been justified and should be granted, with 
provision that a caretaker be provided. 

It is therefore ordered, That application of Southern Railway 
Company, Southeastern Express Company, as well as request of Inter- 
vener, Western Union Telegraph Company, for authority to discontinue 
the agency at Donnaha and make same a prepay point, be, and the 
same are, hereby granted, provided a caretaker is established by the 
Southern Railway Company for the protection of less than carload 
freight. 

This 1st day of August, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1274. 

IN THE MATTER OF DISCONTINUANCE OF ROCKFORD AS AN 
AGENCY STATION. 

Order 
Appearances : 

Petitioners: H. E. Powers and Wm. T. Joyner, Raleigh, N. C, 

for Southern Railway Company. 
J. R. Sowell, Greensboro, for Southeastern Express Company. 
Protestants: J. H. Folger, Mount Airy, for Folger and Fogler. 
W. H. Holmes, Gastonia, N. C, for Order of Railroad Teleg- 
raphers. 

In accordance with Rule 12- A of this Commission's Rules of Practice 
the Southern Railway posted at Rockford a notice of its intention to 
apply for authority to convert that station to a non-agency station. 
The petition was filed on April 12, 1938, and duly heard by the 
Commissioner on June 21. The Southeastern Express Company, paying 
a commission to the railway agent for the handling of express business 
at Rockford, filed its application on April 20, 1938, and was also heard 
on the above date. Prior to the hearing several protests were filed. 

For the year of 1937, there was forwarded from Rockford via the 
Southern Railway less than carload freight amounting to $12.82, of 
which $10.76 accrued to petitioner. Freight received, collect, was 



Decisions and Adjustments of Complaints 303 

L.C.L., $190.47; carload, prepaid, consisting of fertilizer, $1,424.86. 
Ticket sales amounted to $211.63. The total number of shipments 
involved was 114 for the year, and the salary of the agent was $891.00. 

During the first five months of 1938 the less than carload business 
amounted to $43.25; carload, $1,132.63; and ticket sales, $42.25. 

The express earnings at Rockford amounted to $115.97 for the year 
of 1937, only $47.62 of which accrued to the applicant. Southeastern 
Express Company. Its expenses, being commissions of $7.50 monthly, 
amounted to $90.00, resulting in a deficit of $42.38. 

It is of record that at one time Rockford was a very good agency 
but like many others became unimportant with the advent of good 
roads and highway transportation. However, at present, this town is 
not located on a highway although an effort is being made to have a 
bridge built across the river nearby, which would connect Rockford 
with highways leading to other towns not located on any railroad 
which, it is contended, would prove beneficial to Rockford. Of course, 
the construction of good highways through railway towns has not, 
from past experience, resulted in increased earnings to the railroads. 
On the contrary, much of the business previously enjoyed was diverted 
to trucks and buses. It would remain to be seen whether this would 
result in the case of Rockford when a highway through it has been 
built. 

Petitioners' earnings at this station, while declining, considering 
carload as well as less than carload business,, have been somewhat 
more than sufficient to pay its expenses. As previously stated, prac- 
tically all of the carload business consists of fertilizer, with freight 
prepaid, and this during the Spring season, leaving only a few less 
than carload shipments, which amounted to only $276.27, gross, for 
the year of 1937, to be handled by the agent. This amount of business 
does- not, at this time, justify the expense of maintaining the agency, 
and it is not believed that the closing of the station, provided a care- 
taker is placed in charge for the purpose of protecting the less than 
carload shipments, will seriously affect the interest of the public. 
Authority will be granted to make Rockford a prepay point with the 
understanding that when conditions become better and business justi- 
fies it, petitioners will reopen the station. 

It is therefore ordered, That petitions of the Southern Railway 
Company and Southeastern Express Company for authority to close 
the station at Rockford, and make same a prepay point, be, and the 
same are hereby, approved, provided a caretaker is placed in charge 
to give protection to less than carload shipments. 

This 1st day of August, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1273. 



304 N. C. Utilities Commission 

DISCONTINUANCE OF THE AGENCY AT WILLITS. 

Order 
Appearances : 

H. E. Powers, Attorney, Raleigh, N. C, for Southern Railway 
Co., and G. W. Saunders, Greensboro, N. C, for Western Union 
Telegraph Company, Petitioners. 

Application of Southern Railway Company for authority to dis- 
continue its agency at Willits was filed on July 7, 1938, and heard 
by me on September 20, 1938. Pursuant to Rule 12- A of our Rules of 
Practice, notices were posted at the station and several letters of 
protest, as well as a petition containing the names of approximately 
125 persons residing there and in Scotts Township opposing the 
proposal, were received. No one appeared at the hearing in opposition 
to the action. 

As applicant's agent acts also as agent for the Western Union 
Telegraph Company, that company intervened and requested similar 
relief in event the Southern Railway Company was granted permission 
to close Willits station. 

The application, when filed, had appended thereto a statement 
showing total freight revenue earned on shipments received at and 
forwarded from Willits for two periods of 12 months each, ended with 
April 30, 1937, and April 30, 1938, which I have condensed and show 
below : 

Received Forwarded 

Year Carload L. C. L. Carload L. C. L. Total 

1936-1937 .... $108.08 $446.35 $3.11 $557.54 

1937-1938 .... $148.94 27.51 10.99 2.45 189.89 

Total $148.94 $135.59 $457.34 $5.56 $747.43 

It will be seen that freight revenues for the year ended April 30, 
1938, declined approximately 65 per cent. 

For the first year in the above period ticket sales amounted to 
$226.24, and for the second year $229.20, an increase of $2.96. The 
combined freight and passenger revenues for these two years amounted 
to $1,202.87, or a monthly average of $50.12. The cost of maintaining 
the station was $2,787.00, or a monthly average of $116.12, resulting 
in a monthly loss of $66.00. 

Additional figures were submitted at the hearing for the months of 
May, June, July, and August, 1938, as follows: 

Freight Freight Ticket 

Month Received Forwarded Sales Total Expenses 

May $0.55 $ 0.00 $ 9.00 $ 9.55 $124.80 

June 0.76 16.80 8.91 26.47 124.80 

July 1.34 1.08 8.10 10.52 124.80 

August 1.58 0.00 7.75 9.33 129.60 

Total $4.23 $17.88 $33.76 $55.87 $504.00 

The total passenger and freight earnings of $55.87 for these four 
months, averaging only $13.97 per month, shows a drastic decline 
compared with $50.12, the monthly average for the 24 months' period 
hereinbefore discussed. The expenses increased, averaging $126.00, 



Decisions and Adjustments of Complaints 305 

or approximately $10.00 per month more than the average for the 
previous period of 2 years. 

The Western Union Telegraph Company stated that revenue for 
business handled at Willits for 12 months averaged only 75 cents per 
month and that it could not maintain an operator in the event the 
rail agency is closed. Therefore, similar relief is requested. 

In some of the letters from protestants, it is admitted that revenues 
are not sufficient to pay the salary of the agent, but contend that 
Willits is the meeting point for most all of the trains, and that an 
agent is necessary for their safe operation, especially in view of the 
fact there is a very steep grade by the station. It is also contended 
that the agent at Willits saves the company more than enough to pay 
his salary by means of preventing much overtime in train and engine 
crew wages, which would necessarily result were there no agent there 
to receive train orders, etc. Likewise, it is believed by protestants that 
serious accidents or collisions have been avoided by the agent. 

Willits is located between Balsam and Addie, both agency stations, 
the former being 3.9 miles east and the latter 2.9 miles west, either 
or both of which may be used in the dispatch of trains without incon- 
venience to the public, expense to applicant, and danger to the train- 
men and passenger travel. This, however, is a managerial question 
over which this Commission as a regulatory body has no authority. 
Moreover, Balsam and Addie are easily accessible to Willits which 
can be used by the public with very little inconvenience in the trans- 
portation of freight that cannot move through the station at Willits, 
if closed. It is not proposed to discontinue the stopping of passenger 
trains at Willits and passengers, without any inconvenience, would 
pay their regular fares to the conductors. 

The Southern Railway Company is in a precarious condition, 
financially, and by necessity must economize wherever possible. It is 
faced with the problem of removing all unprofitable operations, which 
is essential to its continued existence as a public servant. It cannot 
be expected to render good service demanded by the general public 
if it is required to absorb losses that can be avoided. The loss sustained 
by applicant at Willits from month to month and year to year seems 
small when compared with the size of the railroad, but it is a multi- 
plicity of such small losses andr the diversion of traffic to motor vehicle 
carriers that have resulted in the filing of applications for relief. 

Millions of dollars have been borrowed from the Federal Govern- 
ment for the purpose of purchasing equipment, meeting its bond 
interests, and other obligations. The company's revenues have been 
insufficient to meet these requirements. Its operating costs have dras- 
tically increased. 

It is an unpleasant task to authorize that facilities which a com- 
munity has enjoyed for years be taken from it, but as public necessity 
and convenience no longer require the agent at Willits applicant will 
be permitted to discontinue the station. 

It IS THEREFORE ORDERED, That application of the Southern Railway 
Company for authority to discontinue its agency at Willits be, and the 
same is, hereby granted. 



306 N. C. Utilities Commission 

It is further ordered, That the Western Union Telegraph Com- 
pany be, and it is, hereby authorized to discontinue the handling of 
commercial telegraph business at Willits. 

This 21st day of September, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1352. 

APPLICATION OF SOUTHERN RAILWAY COMPANY TO DISCON- 
TINUE PASSENGER TRAINS NOS. 19 AND 20, OPERATING BE- 
TWEEN ASHEVILLE AND BRYSON CITY. 

Order 
Appearances: 

W. T. Joyner, Attorney at Law, and W. F. Cooper, Superintend- 
ent, for Applicant. 

This application, dated at Asheville, N. C, on February 16, 1938, 
was heard in the office of the Commission on March 14, 1938. In ac- 
cordance with Rule 12-A of our Rules of Practices, public notices to 
the effect that application had been made to us for authority to dis- 
continue these trains were posted at all points on the line over which 
they operate, which notices remained posted for a period of at least 
ten days. 

Although several Chambers of Commerce and business firms filed 
written protests against applicant's action, some of which were with- 
drawn, no one appeared at the hearing in opposition thereto. 

The total revenue, including ticket and express earnings, for six 
months ended January, 1938, amounted to $4,104.32 for train No. 19, 
and $3,432.29 for train No. 20. The expense, comprised of wages, fuel, 
and maintenance of equipment, etc., during this period amounted to 
$13,649.12, or $6,824.56 chargeable to each train. 

The loss from operation of train No. 19 was $2,720.24 and of train 
No. 20, $3,392.27, or a total loss for both trains of $6,112.51, averag- 
ing $1,018.75 monthly. 

In some of these letters written us protestants indicated or as- 
sured that if these trains were not allowed to be taken off they would, 
in future, support them, rather than motor express companies. Sub- 
joined is a statement which shows revenue accruing to applicant and 
the cost of operating trains Nos. 19 and 20 between Asheville and 
Bryson for period February 16 (one day prior to the date on which 
notices were posted) to March 5, 1938, inclusive: 

Train Train 

Revenue No. 19 No. 20 

Ticket Earnings $256.35 $247.23 

Expense 

Wages 418.76 418.76 

Fuel 105.45 105.45 

Maintenance of Equipment 79.80 79.80 

Total $604.01 $604.01 

Loss from Operation $347.66 $356.78 

Loss, Both Trains $704.44 

The above loss of $704.44 for these two trains represents 19 days 



Decisions and Adjustments of Complaints 307 

operation from which it is readily seen that for a month of 30 days 
the average loss would be $1,112.10. It is observed that there were 
no improvements. On the contrary, a greater loss in revealed. 

During this same period the ticket sales for train No. 19 varied 
from $3.20 to $27.70, being, in all cases, much less than the daily 
cost of operation. The wages for the train crew alone amounts to 
$43.66 daily. 

The daily ticket earnings for train No. 20 varied from $4.30 to 
$28.93. 

These figures, however, include receipts that cannot be credited 
to the trains desired discontinued for the reason that a liberal portion 
thereof covered transportation of persons originating or terminating 
at points other than those of the line over which these trains operate. 
Such portion or amount must necessarily be charged to other trains 
into and out of Asheville. 

The line between Asheville and Bryson is paralleled by a hard- 
surface highway to which much passenger travel and express have 
been diverted, drastically diminishing applicant's revenues. 

Witness Cooper testified that he explained to those protesting the 
Southern Railway Company is sustaining a great loss by the continued 
operation of these trains and the curtailment proposed would not in- 
convenience them, which they admitted. 

The record is clear that the Southern Railway System is in dire 
distress financially and because of its failure to procure relief it be- 
comes mandatory to effect all economies possible. It is unfortunate 
that conditions are such as to necessitate this action but for the time 
being the trains should be discontinued without further delay. If it 
can be arranged to restore to applicant the mail contract, which is 
now in possession of a "Star Route," upon a profitable basis and other 
revenues increased so as to allow the operation of these schedules 
without actual out-of-pocket loss, there is no doubt but that the trains 
will be later reinstated. 

It is therefore ordered, That applicant, the Southern Railway 
Company, be and it is hereby authorized to discontinue Trains Nos. 
19 and 20 operating between Asheville and Bryson City on not less 
than twenty-four hours' notice to the public. 

This 15th day of March, 1938. 

By order of the Commissioner : Stanley Winbgrne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1221. 

DISCONTINUANCE OF SOUTHERN RAILWAY COMPANY PAS- 
SENGER TRAINS NOS. 45 AND 11, OPERATING BETWEEN 
SALISBURY AND PELHAM. 

Appearances: Order 

Wm. T. Joyner, H. E. Powers, and F. M. Hair, for Petitioner. 
Petitioner, Southern Railway Company, posted notices at each of 
the stations on its line from, to and through which trains Nos. 46 and 



308 N. C. Utilities Commission 

11 operate to the effect that it had petitioned this Commission for 
authority to discontinue these trains and that hearing would be held 
thereon on April 12, 1938. No one appeared in opposition to the pro- 
posed discontinuance of these trains. 

At the present time train No. 46 leaves Salisbury at 2:15 P.M., 
arrives Greensboro at 3:18 P.M., and passes Pelham at 4:30 P.M., 
arriving Danville, Va., immediately across the Virginia-North Carolina 
State Line, at 4:52 P.M. 

Train No. 11 leaves Danville, Va., at 4:15 A.M., passes Pelham at 
4:20 A.M., Greensboro at 5:30 A.M., and arrives Salisbury at 7:15 A.M. 

For a period of ten days, March 16 to March 25, 1938, inclusive, 
train No. 11 handled only 43 revenue passengers between Danville 
and Salisbury for which the revenue amounted to $32.45. Revenue 
derived from handling mail amounted to $43.40, or a total revenue 
of $75.85. The cost of operating this train amounted to $368.60, re- 
sulting in a loss of $292.75, averaging $29.28 daily. 

For the same period, train No. 46 handled 122 revenue passengers 
with revenue of $66.94. The out-of-pocket cost of this operation was 
approximately $340.00, or a loss of approximately $275.00. 

It is contended that the discontinuance of passenger train No. 11 
will result in no inconvenience or lack of service to the public as 
passenger train No. 39, leaving Danville, Va., at 4:30 A.M., 20 min- 
utes after the departure of No. 11, will afford the same train service 
as that now being rendered by the said train No. 11. 

Train No. 36 now leaves Salisbury at 12:30 P.M., 1 hour and 45 
minutes ahead of train No. 46 and it is believed this will furnish am- 
ple service in the event the latter train is discontinued. 

At present there are five afternoon and evening bus schedules from 
Salisbury at 2:45 P.M., 3:45 P.M., 4:55 P.M., 6:35 P.M., and 8:25 P.M., 
which arrive Greensboro at 4:30 P.M., 5:30 P.M., 6:40 P.M., 8:20 P.M., 
and 10:05 P.M., respectively. There are three afternoon and evening 
buses departing from Greensboro for Pelham and Danville at 1:55 
P.M., 6:00 P.M., and 10:25 P.M. 

It is believed that public necessity and convenience no longer re- 
quire the operation of these trains. Conversely, public necessity and 
convenience will be fully and adequately served should these trains, 
now operating at a substantial loss, be discontinued. 

It is therefore ordered, That petition of the Southern Railway 
Company for authority to discontinue trains Nos. 46 and 11, operat- 
ing between Salisbury, and Pelham, be, and the same is hereby 
granted. 

It is further ordered, That the authority herein granted may be 
made effective on or after April 22, 1938. 

This 19th day of April, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1272. 



Decisions and Adjustments of Complaints 309 

APPLICATION OF SOUTHERN RAILWAY COMPANY FOR AU- 
THORITY TO DISCONTINUE SUNDAY PASSENGER TRAIN 
SERVICE BETWEEN DURHAM, N. C, AND KEYSVILLE, VA. 

Order 

Appearances: 

H. E. Powers, Raleigh, N. C, for applicant. 

This application was heard by me on August 24, 1938. No one ap- 
peared in opposition thereto. In compliance with Rule 12- A, the public 
was informed by means of notices posted at each station of the in- 
tention of applicant to apply for the discontinuance of Sunday trains 
107 and 108 between Durham, N. C, and Keysville, Va. A similar 
application has been heard by the Virginia Corporation Commission. 

At present these trains, handling both freight and passengers, leave 
Durham at 4:00 o'clock A.M., and arrive Keysville at 8:30 o'clock 
A.M. Returning, they leave Keysville at 9:10 A.M. and arrive Durham 
at 1:30 P.M. 

Statements were submitted to show revenue accrued from passen- 
gers and mails on these trains for the four Sundays in June and the 
five Sundays in July, 1938, compared with operating costs. These may 
be stated in brief form, as follows: 

Number On-line Off-line 
Passengers Revenue Revenue Total Knrripnsps Net T.nss _ 

139 $121.31 $37.15 $158.46 $894.87 $736.41 

The on-line revenue included $57.96 derived from handling mail. 

It will be observed that for the nine Sundays for which figures 
are given an average of 15.5 passengers were handled per Sunday, 
or 7.7 passengers per train per Sunday. Revenue derived from the 
handling of passengers during this period amounted to approximately 
45.6 cents per passenger, and by including mail the revenue amounted 
to approximately 87.3 cents per passenger. 

The actual expenses of operating trains 107 and 108 per Sunday, 
consisting of wages (for 5 men), fuel, terminal charges, engine house, 
cleaning, icing and watering cars, lubrication, supplies and water, 
amounted to $81.09, or $894.87 for nine Sundays. This total was equiv- 
alent to $6.43 to handle one passenger. Of course, this would have 
been considerably less had there been a substantial number of pas- 
sengers using these facilities. 

It was testified that there is ample bus service between Durham 
and Keysville, via Clarksville and Blackstone, Va., to which, doubt- 
less, much passenger travel has been diverted. 

In view of the meager travel on these trains, the cost of operating 
them and competition encountered it is not believed that their con- 
tinuation is required by the public, there appearing to be no public 
convenience and necessity demanding the service. Applicant is there- 
fore permitted to discontinue the operation of Sunday trains Nos. 107 
and 108, between Durham and the North Carolina-Virginia State 
Line provided the Virginia Commission accords similar action between 
the state line and Keysville, Va., the said discontinuance to become 



310 N. C. Utilities Commission 

effective simultaneously with the discontinuance within Virginia, if 
authorized. 

It is therefore ordered, That application of Southern Railway 
Company for authority to discontinue Sunday passenger train service 
between Durham, N. C, and Keysville, Va., only in so far as this 
is accorded within North Carolina, be, and the same is, hereby 
approved. 

It is further ordered, That the authority herein given may become 
effective simultaneously with the discontinuance of said operations 
within the State of Virginia. 

This 27th day of October, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 1364. 

DISCONTINUANCE OF SOUTHERN RAILWAY PASSENGER 
TRAINS NOS. 2, 4, 7, AND 9, BETWEEN WINSTON-SALEM AND 
GREENSBORO; TRAIN NO. 24 BETWEEN CHARLOTTE AND 
WINSTON-SALEM; AND CHANGES IN SCHEDULES OF OTHER 
TRAINS BETWEEN GREENSBORO, WINSTON-SALEM AND 
CHARLOTTE. 

Order 

Appearances: 

Wm. T. Joyner, H. E. Powers and J. S. Bergman, for Petitioner. 
The Southern Railway Company, petitioner in the above matters, 
posted notices at each station along its line of road between Greens- 
boro and Charlotte to the effect that it had filed petition with this 
Commission for authority to discontinue passenger trains Nos. 2, 4, 
7 and 9 between Winston-Salem and Greensboro; train No. 24 be- 
tween Charlotte and Winston-Salem, and to change schedules of 
other trains operating between Charlotte, Winston-Salem and Greens- 
boro. In each of these notices the public was informed that the peti- 
tion would be heard by us on April 12, 1938. No one appeared in 
opposition to the proposed abandonments or changes. 

At present trains Nos. 9 and 1 leave Greensboro at 6:30 A.M. and 
7:05 A.M., respectively, requiring 45 minutes to run to Winston- 
Salem. Should train No. 9 be discontinued petitioner will advance the 
departing time of train No. 1 to 6:57 A.M. Train No. 7 leaves Greens- 
boro at 10:50 P.M. If discontinued, petitioner will change the depart- 
ing time of No. 5 from 9:02 P.M. to 9:10 P.M. 

At present train No. 2 leaves Winston-Salem at 5:20 A.M. and 
arrives Greensboro at 6:02 A.M. Train No. 10, on discontinuance of 
No. 2, will leave at 10:15 A.M. instead of 10:25 A.M. Train No. 4, 
which is to be discontinued, now leaves Winston-Salem at 2:25 P.M. 
Trains Nos. 6 and 8 will be changed from 7:40 P.M. and 9:50 P.M. 
to 7:50 P.M. and 9:55 P.M., respectively. 

Train No. 9 from Greensboro handles mail and express as well as 
the Washington-Winston-Salem Pullman from main line train No. 39. 



Decisions and Adjustments of Complaints 311 

Train No. 1, which now leaves Greensboro 30 minutes after the de- 
parture of train No. 9, handles the New York-Winston-Salem Pullman 
from main line train No. 29. The consolidation of trains 9 and 1 will 
not materially affect the interests at Winston-Salem. 

It is proposed to discontinue train No. 24 now operating from 
Charlotte at 8:35 A.M. and arriving at Winston-Salem at 11:35 A.M. 
Train No. 12, which does not operate on Sunday, leaving Charlotte at 
11:50 A.M. and arriving Taylorsville at 4:25 P.M. will be changed 
to a daily train to leave Charlotte at 9:00 A.M., with only a running 
time of two hours and fifty minutes. Train No. 4 will be added be- 
tween Charlotte and Winston-Salem, scheduled to leave Charlotte at 
8:05 P.M. and arrive Winston-Salem at 10:30 P.M. Train No. 15, op- 
erating daily, except Sunday, will be changed to a daily schedule, 
leaving Taylorsville at the same time as presently published but will 
arrive Charlotte at 7:50 P.M. or 20 minutes earlier. 

Train No. 4, substituted for train No. 24 out of Charlotte, will 
carry connection of main line train No. 38 from New Orleans and 
Atlanta, and also No. 32's connection from Augusta, Ga. No. 4 will 
also pick up Asheville Division No. 12 and No. 16 connections at 
Barber. Thus, passengers enroute to Winston-Salem will not be re- 
quired to follow a longer route via Greensboro which necessitates an 
additional time of one hour. 

The following is a statement of earnings and operating costs of 
trains Nos. 2, 9, 4, and 7 operating between Winston-Salem and 
Greensboro, and train No. 24 operating between Charlotte and 
Winston-Salem, based on a ten-day period, April 1 to April 10: 

Train Train Train Train Train 

No. 2 No. 9 No. 4 No. 7 No. 24 

Cost of Operation $114.09 $114.09 $99.91 $99.91 $301.54 

Earnings 43.90 129.25 27.48 32.50 118.95 

Net' Operating Loss 70.19 15.16* 72.43 67.41 182.59 

* Net Operating Income. 

The total loss resulting from the operations of these trains for the 
period in question was $392.62, which, on a thirty-day basis, approxi- 
mates $1100. 

At the present time there are eight bus schedules operating from 
Winston-Salem to Greensboro between the hours of 7:25 A.M. and 
9:15 P.M., while from Greensboro there are eleven bus schedules op- 
erating between the hours of 6:25 A.M. and 1:50 A.M. 

It is not believed that the discontinuance of these trains will in- 
convenience the traveling public. Conversely it is believed the pro- 
posed changes will be received favorably by the public as the said 
changes appear to be much more convenient from several standpoints 
than the present schedules. 

It is therefore ordered, That petition of the Southern Railway 
Company for authority to discontinue passenger trains Nos. 2, 4, 7 
and 9 between Winston-Salem and Greensboro; train No. 24 between 
Charlotte and Winston-Salem and the changes proposed in the other 
trains, be, and the same is hereby, granted. 



312 N. C. Utilities Commission 

It is further ordered. That the authority herein granted may be 
made effective on or after April 24, 1938. 

This 19th day of April, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1271. 

DISCONTINUANCE OF SOUTHERN RAILWAY PASSENGER 
TRAINS NOS. 2, 4, 7, AND 9, BETWEEN WINSTON-SALEM AND 
GREENSBORO; TRAIN NO. 24 BETWEEN CHARLOTTE AND 
WINSTON-SALEM; AND CHANGES IN SCHEDULES OF OTHER 
TRAINS BETWEEN GREENSBORO, WINSTON-SALEM AND 
CHARLOTTE. 

Supplemental Order 
In our order dated April 19, 1938, the Southern Railway Company 
was authorized to discontinue passenger trains Nos. 2, 4, 7, and 9 
between Winston-Salem and Greensboro; train No. 24 between Char- 
lotte and Winston-Salem, and to change schedules of certain other 
trains between Charlotte, Winston-Salem and Greensboro. These 
changes became effective on or after May 24, 1938. 

It now appears that mixed trains Nos. 12 and 15 operating be- 
tween Taylorsville and Charlotte were inadvertently placed on a 
seven-day work schedule, whereas it had not been contemplated to 
operate them on Sundays. Applicant requests relief from the require- 
ment that these mixed trains be operated on Sundays. Since the in- 
auguration of this service, the revenue accruing from the operation 
of these trains on Sundays, viz: June 5, June 12, June 19, and June 
26, averaged only $16.49, which includes passenger and mail reve- 
nues. No express is handled. The costs of operating these two trains 
for the Sundays amounted to $81.72, or a net loss of $65.21. 

It is also proposed to change the schedule of train No. 12 to leave 
Charlotte at 9:35 A.M. and arrive Taylorsville at 1:00 P.M., being 
one hour and ten minutes later than the present schedule; and to 
change the schedule of train No. 15 to leave Taylorsville at 4:00 
P.M. and arrive Charlotte at 7:15, thirty-five minutes earlier than the 
present schedule. 

Under this proposed schedule train No. 12 will make connection 
with Applicant's main line trains Nos. 36, 24, 39, and 29. Train No. 
15 will make connection at Charlotte with trains Nos. 38, 32, 40, 135, 
and 35. Connections out of Charlotte for the West on train No. 22, 
leaving at 1:10 P.M., connecting with westbound train No. 21 at 
Barbour would not be disturbed. Train 22's connection from Asheville 
through Barber arriving at Charlotte at 4:15 P.M., would likewise be 
maintained. 

It is not believed that the changes now proposed will result in 
any inconvenience to the public and our order of April 19 will be 
amended to reflect the proposed changes. 



Decisions and Adjustments of Complaints 313 

It is therefore ordered. That our order of April 19, 1938, be, and 
the same is hereby supplemented and amended to reflect the changes 
referred to in the foregoing opinion. 

It is further ordered. That in all other respects said order of 
April 19, 1938, shall remain in full force and effect. 

This 21st day of July, 1938. 

By order of the Commissioner : ' Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1271. 

APPLICATION OF VIRGINIA AND CAROLINA SOUTHERN RAIL- 
ROAD COMPANY FOR AUTHORITY TO DISCONTINUE SUN- 
DAY PASSENGER TRAIN SERVICE BETWEEN LUMBERTON 
AND HOPE MILLS AND TO MOVE THE TICKET OFFICE FROM 
THE UNION STATION AT LUMBERTON. 

Order 

Appearances: 

J. Q. Beckwith, Vice President, Lumberton, N. C, for Applicant. 

This application dated on August 25, 1938, was heard by me on 
September 22, 1938. In compliance with Rule 12-A of our Rules of 
Practice, applicant posted notices at Lumberton, St. Paul, and Hope 
Mills, advising the public this application would be filed. No one 
appeared in opposition thereto. 

For a period of six months ended June 30, 1938, receipts derived 
from Sunday operation of trains between Hope Mills and Lumberton 
were $142.60, averaging $5.81 per Sunday. The wages of the crew 
amounted to $7.65 per Sunday, costs of fuel, maintenance, deprecia- 
tion and insurance, $7.04, and other expenses, $2.42, resulting in 
$17.11 necessary to perform Sunday service between these two points. 
Consequently, applicant has been operating at a loss of $11.30 per 
Sunday. 

There are six round trip bus schedules operating between Lum- 
berton, St. Paul, and Fayetteville by the Queen City Coach Company, 
which will amply provide for any travel if this service is discontinued. 

The receivers of the Seaboard Air Line Railway have approved 
applicant's request that its contract, dated May 19, 1915, covering 
joint use of the passenger station at Lumberton, be terminated. This 
will relieve it of the necessity of paying the sum of $25.00 each month 
in rental to the Seaboard Air Line Railway for use of its passenger 
station at that point. Due to increases in costs of operations, taxes, 
etc., and the fact that this line has been operating at a deficit for 
seven years, it is necessary that it economize wherever possible. It 
appears, therefore, that public convenience and necessity no longer 
require the operation of passenger trains between Hope Mills and Lum- 
berton, and the continued use of the Seaboard Air Line Railway pas- 
senger station at the latter point. The application will be granted. 
Applicant should comply with Rules and Regulations of the United 
States Post Office Department in the discontinuance of this service 



314 N. C. Utilities Commission 

in order that other arrangements may be made for the handling of 
United States mail. 

It is therefore ordered. That application of the Virginia and Caro- 
lina Southern Railroad Company for authority to discontinue Sunday 
passenger service between Lumberton and Hope Mills, and to move 
the ticket office from the Union Station at Lumberton, be, and the 
same is hereby, granted. 

This 22nd day of September, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1397. 

APPLICATION OF THE WINSTON-SALEM SOUTHBOUND RAIL- 
WAY COMPANY FOR AUTHORITY TO DISCONTINUE HIGH 
ROCK AS AN AGENCY STATION. 

Order 

The above application dated September 22, 1938, filed with me 
on September 23, requests authority to close its station at High Rock 
and make same a prepay point. Applicant posted notice at High Rock 
on September 6, 1938, informing the public of its intention to apply 
for authority to discontinue the agency, pursuant to Rule 12- A of 
our Rules of Practice. 

It is stated that there will be no reduction whatever in the present 
personnel of a day and night operator. High Rock is an interchange 
point with the HPT&D Railroad which represents practically all the 
traffic handled there. 

Inasmuch as no one has registered any opposition to this proposal, 
applicant will be authorized to make High Rock a prepay point, sub- 
ject to further investigation upon complaint. 

It is therefore ordered, That application of the Winston-Salem 
Southbound Railway Company, for authority to discontinue its agency 
at High Rock and make same a prepay point be, and the same is, 
hereby granted. 

This the 28th day of September, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1419. 

APPLICATION OF WINSTON-SALEM SOUTHBOUND RAILWAY 
COMPANY TO DISCONTINUE ITS AGENCY AT SOUTHMONT. 

Order 
Appearances : 

Kerr Craige Ramsay, for applicant. 
Emmett G. Willis, for protestants. 

Notice of its intention to apply to this Commission for authority 
to discontinue the agency at Southmont was posted on February 4, 
1938, by the applicant, Winston-Salem Southbound Railway Com- 



Decisions and Adjustments of Complaints 315 

pany, pursuant to Rule 12- A of our Rules of Practice, and remained 
posted for a period of at least ten days required thereby. 

The application was dated February 3, 1938, and was heard on 
March 16, 1938, following a postponement from March 8, 1938. 

Applicant's entire line, 90 miles in length, is within North Carolina 
extending from Winston-Salem, on the North, to Wadesboro, on the 
South. It connects with the Norfolk and Western Railway and Southern 
Railway at Winston-Salem; with Southern Railway at Lexington; 
with the High Point, Thomasville & Denton ailroad at High Rock; 
with the Yadkin Railway at Albemarle; with the Norfolk Southern at 
Norwood; and the Atlantic Coast Line Railroad, its parent line, and 
Seaboard Air Line Railway at Wadesboro. 

Southmont is located 32 miles from Winston-Salem and 58 miles 
from Wadesboro. The nearest agency stations, in the event the appli- 
cation is granted, will be Lexington, 11.3 miles North, and High Rock, 
5.6 miles South. 

Witness S. P. Collier, Traffic Manager for applicant, testified that 
during 1937, 191 shipments of which 57 consisted of Company material, 
were received at this station, on which the revenue amounted to 
$439.31. There were only 40 outbound shipments, the revenue from 
which being $14.32, or a gross revenue from both inbound and out- 
bound freight of $454.03. This was not broken down to show the por- 
tion accruing to connecting lines on joint traffic but, it was testified, 
a substantial portion accrued to connections. During the month of 
February, 1938, the revenues amounted to $6.49 compared with $8.23 
for the same month in 1937. 

The minimum cost of operating this station, including agent's salary 
of $1,022.40, is $1,182.40, annually, or an operating loss somewhat in 
excess of $750.00. 

Mr. C. H. Hedrick filed a petition containing the names of 33 
Southmont citizens who protested the closing of their station. An in- 
vestigation by applicant revealed only 4 of this number received or 
forwarded shipments by rail during the year of 1937. These were 
Messrs. C. H. Hedrick, C. S. Haislip, C. R. Moss, and G. G. Barnes, 
whose respective freight charges amounted to $143.27, $71.50, $9.91, 
and $3.77. 

For the year of 1937, the entire line of applicant lacked approxi- 
mately $44,000 of meeting fixed charges. The deficit for that year was 
more than the year of 1936. Fixed charges have not been met since 
1927 or 1928. 

Due to a misunderstanding, protestants, the people of Southmont 
community, appeared in Raleigh on March 1, 1938, one week before 
the hearing which was originally set for March 8, but postponed to 
March 16, and in order that they may not be required to return it was 
stated to them that their contentions, briefly outlined by Mr. Willis, 
appearing herein, would be given due consideration. A description of 
the town, including the number of its people, and the number of poten- 
tial customers, were given. There are 50 or 60 homes in the vicinity 
of the village. The chief industry of the section as a whole is farming. 



316 N. C. Utilities Commission 

As previously stated, only a few received or forwarded shipments 
from Southmont but it was indicated that most of them farm and have 
no occasion to use freight service regularly. If, however, the occasion 
should arise there is no other convenient way by which they may 
receive their materials as Southmont is not on a highway and, there- 
fore, served by no other transportation company. 

When the Winston-Salem Southbound Railway was originally 
established, several of the people at Southmont and in the community, 
some for compensation, gave a right-of-way to it with the understand- 
ing that transportation and freight facilities would be available and 
a station constructed. The passenger service was discontinued a few 
years ago. 

It is an unpleasant task to close stations because, as has been said 
in previous cases before this Commission, the community is put to 
considerable inconvenience and the unemployment list is increased by 
so doing. It is true that everyone is a potential customer but if condi- 
tions are such that that potentiality is rather remote and there appears 
to be no business in sight to warrant the continuance of this agency, 
in order to preserve the railroad, if possible, economics should be 
effected, of which the closing of unprofitable stations in a part. If at 
a later date conditions improve sufficiently to warrant reopening, 
consideration should be given to doing so. In the instant case it is 
clear that Southmont is unprofitable, the expenses being approximately 
three times the gross revenues, and the record discloses that its discon- 
tinuance is justified. A caretaker, however, should be provided to 
protect less-than-carload freight. This can be done with a minimum 
amount of expense. 

It is therefore ordered. That application of Winston-Salem South- 
bound Railway for authority to discontinue its agency at Southmont 
be, and it is hereby, granted. 

It is further ordered, That applicant provide a caretaker in line 
with the foregoing opinion. 

It is further ordered, That the authority herein granted shall 
become effective on not less than fifteen days' notice. 

This 30th day of March, 1938. 

Stanley Winborne, 

By order of the Commissioner : Commissioner. 

R. O. Self, Chief Clerk. 

Docket No. 1212. 

PETITION OF THE YADKIN RAILWAY COMPANY FOR AUTHOR- 
ITY TO DISCONTINUE THE AGENCY AT GOLD HILL, N. C. 

Order 
Appearances: 

W. T. Joyner, H. E. Powers, and Wm. M. Archer, for petitioner. 
W. H. Holmes, for order of Railway Telegraphers, protestant. 
Through its superintendent, Mr. Wm. M. Archer, the Yadkin Rail- 
road Company filed, on November 18, 1937, petition to discontinue the 



Decisions and Adjustments of Complaints 317 

agency at Gold Hill, a non-telegraph station, in Rowan County, North 
Carolina, and convert said agency into a prepay station under the 
supervision of the agent at Richfield. As required by this Commis- 
sion's Rules of Practice and Procedure petitioner duly posted, on 
November 8, 1937, notice to the public of its intention to file this 
petition. The petition lists the names of business enterprises located at 
Gold Hill including that of Eagle Poultry Company located 21/2 miles 
east thereof. Carload freight received at and forwarded from Gold 
Hill consists entirely of non-perishable commodities, viz: wood, logs, 
lumber, fertilizer, ground limestone, lubricating oil, and coal. 

The petition was docketed for public hearing in the offices of the 
Commission on December 7, 1937. A number of shippers and receivers 
of freight located at Gold Hill addressed letters to me prior to the 
hearing in which they expressed themselves in vigorous opposition to 
the closing of this agency; however, none of them personally appeared 
to offer evidence to substantiate such expressions. 

For a period of twenty-one months ending September 30, 1937, 33 
carloads of freight and 380 less than carload shipments were handled 
to and from this agency, for which petitioner receiver $697.53 on the 
carload freight and $274.82 on less than carloads, or a total revenue 
of $972.35. For this period the average monthly revenue was $46.30. 

This is only $6.30 per month over and above the agent's salary of 
$40.00, out of which is taken the cost of fuel, stationery, tariffs and 
other miscellaneous supplies. These latter costs consume a monthly 
average of $5.55, resulting in an actual profit of 75 cents monthly to 
cover taxes, etc. not embraced in the foregoing. 

Petitioner asserts that public necessity and convenience will be 
served by converting Gold Hill into a prepay station under the direc- 
tion of the agent at Richfield located only six miles south thereof. 
Shippers and receivers of freight would also have the privilege of 
using the Rockwell agency, located 4.7 miles north of Gold Hill. 

The majority of freight received is billed prepaid and it is not 
believed that the closing of the agency, which is located on a paved 
highway paralleling petitioner's entire line, will cause receivers of 
such freight much inconvenience. 

There are only two trains passing this station and, petitioner states, 
the work to be performed by the agent can be done in not more than 
two hours daily. 

Mr. W. H. Holmes, appearing on behalf of the order of Railroad 
Telegraphers, merely stressed the importance of continuing this 
agency, and contended that the average monthly revenue of $46.30 
did not represent the volume of business done at Gold Hill. The exact 
amount of business for the period under review amounts to $3,149.68. 
All of this amount but the Yadkin's proportion of $972.35, however, 
accrues to other lines participating in the movements, none of which 
is used to defray any part of the expenses of operating the station. 
For this reason the portion accruing to the other lines can not be 
considered for the purpose of determining these issues. Protestant does 
not object to this method of arriving at revenues in comparison with 
operation costs. 



318 N. C. Utilities Commission 

Prior to several years ago the agent's salary was $110.00 monthly 
but due to a reduction in business at Gold Hill, it was reduced to 
$80.00 and telegraph service discontinued. A continued drop in busi- 
ness necessitated a further reduction in the agent's salary to $40.00 
which was agreed by the Order of Railroad Telegraphers as the least 
amount that could be paid. This was done in order that it wouldn't 
be necessary to close the station, thereby dispensing with an agent. 

It is not my wish to discontinue railroad agencies and thereby 
add another person to the unemployed list, however, the fact that 
business continues on the decline can not be disregarded and if it is 
expected to maintain the railroads, the need for which is national, 
they must be given a helping hand by closing unprofitable operations. 

It is my opinion, however, that while petitioner is meeting expenses 
at Gold Hill, it should not be permitted to close this agency without 
giving some consideration to the needs of its patrons. For a nominal 
sailary, a caretaker, preferably some patron, whose business is situated 
near the station, should be selected by petitioner to open and close 
the depot in order that less than carload shipments may be handled 
through same with as little inconvenience as possible. 

It is therefore ordered, That petition of the Yadkin Railroad Com- 
pany to discontinue its agency at Gold Hill, N. C, and make same a 
prepay station be, and it is hereby approved. 

It is further ordered. That the petitioner, Yadkin Railroad Com- 
pany, be, and it is hereby, required to employ a caretaker in accord- 
ance with the foregoing opinion. 

It is further ordered, That the authority herein granted may be 
made to become effective on or after January 1, 1938. 

This 10th day of December, 1937. 

Stanley Winborne, 

Commissioner. 

By order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1145. 

Atlantic and North Carolina Railroad Company to the Commission. 
Application for authority to change Tuscarora from regular stop to flag 
stop for passenger trains. Granted. Docket No. 1280. 

Atlantic and Yadkin Railway Company to the Commission. Aban- 
donment of Madison Branch and rates to apply. Adjusted. Docket No. 
978. 

Atlantic Coast Line Railroad Company to the Commission. Appli- 
cation for authority to close agency at Parkersburg, making same 
prepay station. Granted. Docket No. 903. 

Clinchfield Railroad Company to the Commission. Application for 
authority to discontinue agency at Green Mountain. Withdrawn. 
Docket No. 1336. 

East Carolina Railway to the Commission. Application for authority 
to make Macclesfield a prepay station. Withdrawn. Docket No. 1067. 



Decisions and Adjustments of Complaints 319 

High Point, Thomasville and Denton Railroad Company to the 
Commission. Application for authority to discontinue passenger ser- 
vice. Granted. Docket No. 1166. 

Norfolk Southern Railroad Company (M. S. Hawkins and L. H. 
Windholz, Receivers). Complaint of inadequate service by Oriental 
Chamber of Commerce. Additional service furnished. Closed. Docket 
No. 1185. 

Seaboard Air Line Railway (L. R. Powell, Jr., and Henry W. An- 
derson, Receivers) to the Commission. Application for authority to 
change station at Alma from regular to flag stop for trains Nos. 13 and 
14. Granted. Docket No. 1149. 

Seaboard Air Line Railway (L. R. Powell, Jr., and Henry W. An- 
derson, Receivers) to the Commission. Application for authority to 
discontinue agency at Lowe. Withdrawn. Docket No. 1195. 

Seaboard Air Line Railway (L. R. Powell, Jr., and Henry W. An- 
derson, Receivers) to the Commission. Application for authority to 
discontinue passenger service on trains Nos. 315 and 316 between 
Ellerbe and Caroleen. Granted. Docket No. 1187. 

Seaboard Air Line Railway (L. R. Powell, Jr., and Henry W. An- 
derson, Receivers) to the Commission. Application for authority to 
discontinue passenger trains Nos. 29 and 30 between Monroe, N. C, 
and Abbeville, S. C. Approved. Docket No. 1348. 

Seaboard Air Line Railway (L. R. Powell, Jr., and Henry W. An- 
derson, Receivers). Petition by Citizens of Myrick's Siding and also 
Citizens three miles north of Littleton for train stop on signal for 
trains Nos. 13, 14, 15 and 16 to receive and discharge passengers. 
Adjusted. Docket No. 1275. 

Southern Railway Company to the Commission. Application for 
authority to discontinue agency at Bridgewater. Granted. Docket No. 
1351. 

Southern Railway Company to the Commission. Application for 
authority to dismantle and abandon present depot building at Cary. 
Granted. Docket No. 1119. 

Southern Railway Company. Claremont citizens protesting closing 
of agency. Application withdrawn. Docket No. 1276. 

Southern Railway Company to the Commission. Application for 
authority to retire and remove combination depot at Colfax. Granted. 
Docket No. 995. 

Southern Railway Company to the Commission. Application for 
authority to abandon depot building at Dabney. Granted. Docket No. 
904. 

Southern Railway Company to the Commission. Application for 
authority to discontinue Etowah as station agency and make same 
prepay station. Petitioner asks that action on matter be postponed. 
Closed. Docket No. 1069. 

Southern Railway Company to the Commission. Application for 
authority to discontinue combination depot at Gilkey. Granted. Docket 
No. 850. 



320 N. C. Utilities Commission 

Southern Railway Company to the Commission. Application for 
authority to abandon and remove station building at Lyon. Granted. 
Docket No. 207. 

Southern Railway Company to the Commission. Application for 
authority to dismantle and abandon depot at McLeansville. With- 
drawn. Docket No. 1098. 

Southern Railway Company to the Commission. Application for 
authority to retire and remove combination depot at Mount Mourne. 
Granted. Docket No. 996. 

Southern Railway Company. Nebo Citizens protest closing freight 
and ticket office. Application withdrawn. Docket No. 1277. 

Southern Railway Company to the Commission. Application for 
authority to dismantle and abandon depot at Pelham. Granted. Docket 
No. 1004. 

Southern Railway Company to the Commission. Application for 
authority to retire and remove combination depot at Shoals. Granted. 
Docket No. 1043. 

Southern Railway Company to the Commission. Application for 
authority to discontinue combination depot at Thermal City. Granted. 
Docket No. 850. 

Southern Railway Company to the Commission. Application for 
authority to discontinue trains Nos. 117 and 118 between Shelby and 
Columbia S. C. Granted. Docket No. 1268. 

Southern Railway Company. Harry Cooper petitions for additional 
passenger train service between Asheville and Murphy during con- 
struction of State Highway between Bryson City and Andrews. Denied. 
Docket No. 962. 

Southern Railway Company to the Commission. Application for 
authority to discontinue agency station at Linwood. Withdrawn. 
Docket No. 1427. 

APPLICATION TO INTERSTATE COMMERCE COMMISSION FOR 

CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO 

CONSTRUCT AND ABANDON LINES OF RAILROAD: 

Atlantic Coast Line Railroad Company for authority to construct 

and operate an extension of its line from a point of connection on the 

existing track leading from Delco to Acme to a point near the south 

bank of the Cape Fear River, a distance of approximately 2.6 miles, 

all in Columbus County, N. C. Granted. Docket No. 1047. ICC 11709. 

Carolina and Northwestern Railway Company for authority to 

abandon portion of railroad extending from Mile Post 110 at Lenoir 

to Edgemont, approximately 23.5 miles, all in Caldwell County, N. C. 

Granted. Docket No. 1051. ICC No. 11723. 

Durham and Southern Railway Company for authority to operate 
over the line of the Durham and South Carolina jointly with that com- 
pany between the present point of connection of the lines of the two 
companies and the point where the tracks of the Durham and South 
Carolina Railroad Company intersect the spur or industrial track of 



Decisions and Adjustments of Complaints 321 

the American Tobacco Company, approximately 1.9 miles, all in the 
city of Durham, Durham County, N. C. Dismissed without prejudice. 
Docket No. 896. ICC No. 11427. 

Norfolk Southern Railroad Company, Morris S. Hawkins and L. H. 
Windholz, Receivers, for authority to abandon that part of the railroad 
of the Norfolk Southern Railroad Company extending from Beaufort 
to a connection with the Atlantic and North Carolina Railroad Com- 
pany at its eastern terminus at Morehead City, a distance of approxi- 
mately 3.17 miles, all in Carteret County, N. C. Granted. Docket No. 
514. ICC No. 10934. 

Norfolk Southern Railroad Company, Morris S. Hawkins and L. H. 
Windholz, Receivers, for authority to abandon operation of the Atlantic 
and North Carolina Railroad Company. Granted. Docket No. 514. ICC 
No. 10928. 

Norfolk Southern Railroad Company, Morris S. Hawkins and L. H. 
Windholz, Receivers, for authority to abandon the Jackson Springs 
Branch extending from a connection with the Aberdeen and Asheboro 
Branch at West End to Jackson Springs, approximately 4.331 miles, 
all in Moore County, North Carolina. Granted. Docket No. 1323. ICC 
12054. 

TELEGRAPH COMPANIES 

APPLICATION OF WESTERN UNION TELEGRAPH COMPANY 
FOR AUTHORITY TO DISCONTINUE COMMERCIAL TELE- 
GRAPH SERVICE AT COUNCILS, N. C. 

Order 
Appearances : 

B. G. Dopson and C. B. Wester, for applicant. 
L. P. Porter and L. E. Squires, for protestants. 

In compliance with Rule 12-B of the Commission's Rules of Prac- 
tice Seaboard Air Line Railway (L. R. Powell, Jr. and Henry W. 
Anderson, Receivers), through its Chief Public Relations Officer, on 
October 9, 1937, notified the Western Union Telegraph Company that 
it would discontinue its telegraph service at the Station of Councils, 
N. C, effective November 1, 1937. On October 15, 1937, notice was 
posted pursuant to Rule 12- A advising the public of the intention of 
applicant to apply for authority to likewise discontinue commercial 
telegraph service at this point. 

The application is dated October 18, 1937, and due to much opposi- 
tion thereto, the matter was heard by me on November 12, 1937. 

By agreement between applicant and the railroad company where 
business is sufficient at small towns necessitating the use of a telegraph 
operator by the latter company to dispatch its trains and transmit 
orders for car equipment applicant furnishes telegraph wires and the 
railroad company authorizes its operator to conduct applicant's com- 
mercial business for which he receives a small commission. An agent- 
telegrapher receives a larger salary than an agent at a non-telegraph 
station. The reclassification of the agency at Councils by the railroad 



322 N. C. Utilities Commission 

company reduces the agent's salary $40.20 monthly in addition to 
curtailing payments to applicant for use of its wires which are usually 
disconnected or removed upon discontinuance of telegraph service. 

It is, therefore, contended by applicant that it has no means of 
continuing telegraph operations at Councils even if revenues were 
sufficient to pay the above difference in the agent's salary. The average 
monthly receipts for commercial telegraph service there for the year 
of 1936 amounted to only $4.91. To continue this service it would be 
necessary to open another office for which applicant would neces- 
sarily rent, furnish lights and heat, supervise and maintain wires, in 
addition to employing an operator, which would be prohibitive with 
a monthly income less than five dollars. 

The distance from Wilmington to Councils is 34 miles and it is 
applicant's opinion that long distance telephone service between these 
two points could be resorted to, the charge for station-to-station calls 
being 30 cents. It is obvious that this charge would have to be paid 
by the sender of telegrams and not absorbed by the Western Union 
Telegraph Company, the minimum charge of applicant being 25 cents. 

The agent-operator of the Seaboard Air Line Railway who has 
been at this station since 1917 was subpoenaed by protestants to 
appear at the hearing and it is his opinion that the amount of freight 
business conducted there during the year of 1937 justifies the need of 
a telegraph office. During this year 201 tons of less than carload freight 
compared with 104 tons in 1936 was handled through this agency. In 
1935, 74 carloads of revenue freight were handled; in 1936 only 25 
cars, but during the current year to the date of the hearing in this 
matter 286 cars were handled. It is evident that business at Councils 
fluctuates from year to year. It is estimated that the average revenue 
amounts to approximately $40.00 per car. 

The discontinuance of this office will create a space between Clark- 
ton and Acme of approximately 35 miles and protestants urgently re- 
quest that the service they have received in the past be not disturbed. 

The Western Union Telegraph Company and the Seaboard Air Line 
Railway are entirely different corporations. The latter is a user of 
Western Union wires for the conduct of its business and it can, at any 
time, discontinue the use of same upon proper notice to the telegraph 
company. There is no way whereby it can be forced to continue same 
if it is not needed, but may, whenever business justifies, employ appli- 
cant's service in the same manner an individual would if it desired to 
send a telegram. This Commission is without power to require the 
railroad company to use telegraph service in order that applicant may 
continue to serve its patrons commercially. The matter of using tele- 
graph service by the railroad company is one of management which we 
are without authority to regulate. This Commission, however, does 
have authority to order applicant to open and maintain a telegraph 
office at any place where public convenience and necessity require it, 
but it is doubtful, in this case whether it would be constitutional. An 
appeal to the courts would probably bring an opinion that property 
would be confiscated for the reason the burden is thrown on some other 
office to cover the deficit. 



Decisions and Adjustments of Complaints 323 

It is certainly not the desire or wish of this Commission to close 
any station, or to take from the people any service, no matter how 
slight, and it is with great reluctance that orders are made allowing 
stations to be closed or service to be withdrawn but, nevertheless, it is 
faced with facts it cannot ignore and, therefore, in light of the testi- 
mony and evidence the conclusion that the service should be discon- 
tinued is inescapable. 

It is therefore ordered. That application of Western Union Tele- 
graph Company for authority to discontinue commercial telegraph 
service at Councils, N. C, be, and the same is hereby, granted, effective 
on and after January 1, 1938. 

This 21st day of December, 1937. 

Stanley Winborne, 

By order of the Utilities Commissioner: Commissioner. 

R. O. Self, Chief Clerk. 

Docket No. 1114. 

APPLICATION OF WESTERN UNION TELEGRAPH COMPANY 
FOR AUTHORITY TO DISCONTINUE COMMERCIAL TELE- 
GRAPH SERVICE AT MANSON, N. C. 

Order 
Appearances : 

B. G. Dopson and C. B. Wester, for applicant; 
W. W. White, Manson, for protestants. 

The above application, dated October 18, 1937, was heard by me 
on November 12, 1937. It follows a notice by the Seaboard Air Line 
Railway to the Western Union Telegraph Company, dated October 9, 
1937, that it would discontinue railroad telegraph service at Manson, 
effective November 1, 1937, being pursuant to Rule 12-B of this Com- 
missioh's Rules of Practice and Procedure. In compliance with Rule 
12- A of said rules applicant posted notice at this point notifying the 
public of its intention to apply for permission to discontinue commer- 
cial telegraph service. 

The average monthly revenue of the telegraph company, based on 
business handled during the year of 1936, was $5.96. At the time this 
record was closed Manson had no telephone service, knowledge of 
which applicant did not have when it suggested its use in transmitting 
future telegrams, the same having been recently discontinued. Manson 
is located ten miles north of Henderson and five miles south of Norlina, 
both of which are telegraph offices; however, the community served by 
applicant is probably nearer the former office. 

There is a large German settlement around Manson which does a 
large amount of truck farming and during the cantaloupe and berry 
season telegraph service is particularly required. July and August of 
each year are the heaviest revenue months, the receipts of applicant 
for those months in 1937 being $21.66 and $17.00, respectively, com- 
pared with $3.30 and $1.70 in May and June, and $2.71 in September. 

Commercial telegraph service rendered at small towns and com- 
munities has been dependent solely on the railroad company having 



324 N. C. Utilities Commission 

use for operators in the performance of dispatching trains, transmitting 
orders for cars, etc. It was intimated that an agreement exists between 
the Telegraphers' Union and the railroad company that gross revenues 
of the latter must fall below $5,000.00 annually before it can dispense 
with the services of the operator. We have no definite information as to 
this; neither are we in position to confirm it. 

At stations where the railroad company provides operators for 
the conduct of its business the telegraph company, by agreement, is 
authorized to use said operators for the sending and receiving of com- 
mercial telegrams for which its expense is only nominal, being merely 
a small commission paid to such operators. 

Of course, when a railroad company dispenses with its telegraph 
service, which it has an inherent right to do, the question being one 
of management over which this Commission cannot regulate, the duty 
falls on the telegraph company to do one of two things, viz: open an 
office elsewhere in the community for which it would necessarily have 
to provide an operator at a substantial salary, plus rental and other 
incidental expenses, or take steps to discontinue its service if revenues 
do not justify continuance thereof. Here, the latter was chosen and it 
is clear that due to its receipts the first mentioned alternative is out 
of the question. To require applicant to maintain a separate office at 
Manson would very likely be unconstitutional as the Courts would, 
doubtless, on appeal, render an opinion that such would, in effect, 
amount to a confiscation of property due to the fact that the burden of 
maintaining the office is thrown on others, better able to bear it, to 
cover the deficit. 

It is certainly not the desire or wish of this Commission to close 
any station, or to take from the people any service, no matter how 
slight, and it is with great reluctance that orders are made allowing 
stations to be closed or service to be withdrawn but, nevertheless, 
it is faced with facts it cannot ignore and, therefore, in light of the 
testimony and evidence the conclusion that the service should be 
discontinued is inescapable. 

It is therefore ordered. That application of the Western Union 
Telegraph Company for authority to discontinue commercial telegraph 
service at Manson, N. C, be, and the same is hereby, granted, effective 
on and after January 1, 1938. 

This 21st day of December, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1115. 

APPLICATION OF THE WESTERN UNION TELEGRAPH COM- 
PANY TO DISCONTINUE COMMERCIAL TELEGRAPH SERVICE 
AT SOUTHMONT. 
Appearances: Order 

A. J. Southerland, Jr., for applicant, 
Emmett C. Willis, for protestants. 
On February 3, 1938, the Winston-Salem Southbound Railway 
Company petitioned this Commission for authority to close its station 



Decisions and Adjustments of Complaints 325 

at Southmont. Its agent also performs duties for the Western Union 
Telegraph Company, applicant herein, and it likewise, on March 8, 
petitioned for authority to discontinue commercial telegraph service 
at that point simultaneously with the closing of the railroad station. 

This petition was heard on March 16, 1938, immediately follow- 
ing conclusion of hearing on the railroad application. Notice to the 
Public was posted by applicant at Southmont persuant to Rule 12-B 
of our Rules of Practice. 

The total revenue of applicant for 12 months ended January, 1938, 
was $37.03, a monthly average of $3.09. It was stated that the Western 
Union Company is entirely dependent upon the maintenance of the 
railway agency and that if the latter is closed, authority should also 
be granted it to discontinue its service. If refused, the only other al- 
ternative would be to open an office, the cost of which would be pro- 
hibitive, as it would be much in excess of what the railway com- 
pany must pay to maintain its station. 

Protestant admitted that applicant's position is sound; that it 
would be impossible to retain an independent station at Southmont. 
The continuation of Western Union service is dependent upon the 
continuation of the freight service and in view of this relation must 
necessarily be considered at the same time and in the same light as 
the rail application. 

The closing of the station has been justified and an order is being 
issued today granting the rail application. The discontinuance of 
commercial telegraph service is also justified and should be author- 
ized. 

It is therefore ordered, That application of Western Union Tele- 
graph Company to discontinue commercial telegraph service at South- 
mont be, and the same is, hereby granted. 

It is further ordered, That the authority herein granted may be- 
come effective simultaneously with the closing of the railway station. 

This 30th day of March, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1212. 

Postal Telegraph Cable Company to the Commission. Night letter 
rates between points in North Carolina filed and approved. Docket 
No. 1918. 

Western Union Telegraph Company to the Commission. Rates ap- 
proved. Docket No. 1117. 

Western Union Telegraph Company to the Commission. Amend- 
ment to tariff in re messages between points in United States. Ap- 
proved. Docket No. 1095. 

Western Union Telegraph Company to the Commission. Rates on 
figures and groups in which figures occur in telegrams. Approved. 
Docket No. 1039. 



326 N. C. Utilities Commission 

Western Union Telegraph Company. Rates for night letters be- 
tween all points in North Carolina. Approved. Docket No. 1018. 

Western Union Telegraph Company to the Commission. Rates for 
"pep" messages (athletic and debating contests); also rates for kiddie- 
grams. Approved. Docket No. 823. 

Western Union Telegraph Company to the Commission. Amend- 
ment to Special Timed Wire Service between intrastate points in 
North Carolina. Approved. Docket No. 1389. 

Western Union Telegraph Company to the Commission. Applica- 
tion for authority to discontinue agency at Bridgewater. Granted. 
Docket No. 1351. 

Western Union Telegraph Company to the Commission. Applica- 
tion for authority to discontinue service at Councils. Approved. 
Docket No. 1114. 

Western Union Telegraph Company to the Commision. Applica- 
tion to discontinue service at Donnaha. Granted. Docket No. 1274. 

Western Union Telegraph Company to the Commission. Applica- 
tion for authority to discontinue service at Manson. Granted. Docket 
No. 1115. 

Western Union Telegraph Company to the Commission. Applica- 
tion for authority to temporarily discontinue service at Pinnacle, 
messages to be handled by telephone from office at Pilot Mountain. 
Granted. Docket No. 1213. 

Western Union Telegraph Company to the Commission. Applica- 
tion for authority to discontinue commercial telegraph service at 
Pleasant Garden. Granted. Docket No. 942. 

Western Union Telegraph Company to the Commission. Applica- 
tion for authority to discontinue commercial service at Randleman. 
Granted. Docket No. 1400. 

Western Union Telegraph Company to the Commission. Applica- 
tion for authority to discontinue commercial service at Southmont. 
Granted. Docket No. 1212. 

Western Union Telegraph Company to the Commission. Applica- 
tion for authority to discontinue telegraph office at Teachey. Granted. 
Docket No. 1165. 

Western Union Telegraph Company to the Commission. Applica- 
tion to discontinue service at Willitts. Granted. Docket No. 1352. 



Decisions and Adjustments of Complaints 327 

Telephone Companies 

JOINT PETITION OF THE CAROLINA TELEPHONE & TELEGRAPH 
COMPANY AND BRACEY F. FOUNTAIN OF LEGGETTS, N. C, 
OPERATOR OF THE TELEPHONE EXCHANGE AT LEGGETTS, 
EDGECOMBE COUNTY, NORTH CAROLINA, AND OPERATOR 
OF CERTAIN RURAL LINES ADJACENT THERETO AND A TOLL 
LINE FROM LEGGETTS TO TARBORO. 

Order 

This cause arises upon the application of the Carolina Telephone 
and Telegraph Company of Tarboro, N. C, which operates several 
exchanges over the Eastern part of North Carolina, and Bracey F. 
Fountain of Leggets, N. C, an individual operating a telephone ex- 
change with about fifteen telephones in the vicinity of Leggetts and a 
toll line from Leggetts to Tarboro. 

The petition is for the purpose of permitting Mr. Fountain to dis- 
continue service on his exchange and adjacent lines and sell same, 
or such part thereof as the purchaser can utilize, to the Carolina 
Telephone and Telegraph Company which proposes to serve the sub- 
scribers of Mr. Fountain from its Tarboro exchange by multi-party 
line service. The subscribers effected have been advised of the in- 
tention of the parties to this application when they were contacted 
for rights of way for the several lines which the Carolina Telephone 
and Telegraph Company required of Mr. Fountain before it would 
consider taking over his property. 

After investigation and hearing, the evidence presented by the pe- 
titioner, at which time no objection has been registered to the pro- 
posal, it is found that the granting of the petition will enhance public 
convenience and necessity of the subscribers and the community gen- 
erally; by improving the telephone service in that neighborhood, there- 
fore, it is ordered that the petition be granted. 

This the 13th day of July, 1938. 

By order of the Commission: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 1356. 

PETITION OF CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY FOR A CERTIFICATE OF CONVENIENCE AND NECES- 
SITY TO CLOSE THE EXCHANGE OF THE MERCHANTS TELE- 
PHONE COMPANY AT MIDDLESEX, N. C. 

This cause arises upon the petition of Carolina Telephone and 
Telegraph Company to close the Merchants Telephone Company's ex- 
change at Middlesex, N. C, which exchange it has recently purchased, 
and serve that community out of Bailey, N. C, on multi-party lines. 
The evidence shows that the petitioner in this case has recently pur- 
chased the exchanges of Middlesex and Bailey from the Merchants 
Telephone Company and it is necessary to rebuild the property and 
for that reason the petitioner desires to rebuild the exchange at Bailey 



328 N. C. Utilities Commission 

and serve Middlesex therefrom — there not being sufficient subscribers 
at either point to justify a separate exchange at each point. 

The business people at both places have been agitating the ques- 
tion for a long time and desired that the Carolina Telephone and 
Telegraph Company acquire the property there in order to serve 
them. Several difficulties had to be overcome before this could be 
done, and since these had been overcome, the Commission finds that 
the granting of this petition is in the interest of public convenience 
and necessity. 

Therefore, the petition to discontinue the exchange at Middlesex 
and serve subscribers there out of Bailey exchange is hereby granted. 

This the 13th day of July, 1938. 

By order of the Commission: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1355. 

APPLICATION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY FOR PERMISSION TO PROVIDE SPECIAL SINGLE LINE 
SERVICE, (1ST) TO THE UNITED STATES COAST GUARD STA- 
TION AT SWANSBORO, N. C, AND (2ND) TO THE FIRST CITI- 
ZENS BANK AND TRUST COMPANY, AT RICHLANDS, N. C. 

Order 

It having been made to appear to this Commission that there is 
urgent need for single telephone line service to the United States 
Coast Guard Station at Swansboro and also to the First Citizens Bank 
and Trust Company at Richlands; and that at both of said points only 
multi-party service has heretofore been provided for, and that except 
for the single line party service herein asked for, the rural nature 
of the districts around Swansboro and Richlands does not justify gen- 
eral single party line service; 

And it further having been made to appear that, in view of the 
exceptional and peculiar conditions existing in reference to the Coast 
Guard Station and the First Citizens Bank and Trust Company, the 
said Carolina Telephone and Telegraph Company is willing to render 
especial service as an especial accommodation to said two subscribers 
for a fair consideration; 

It is now therefore ordered. That said service is hereby author- 
ized to be extended to said United States Coast Guard Station at 
Swansboro and to said First Citizens Bank and Trust Company at 
Richlands; and that the said applicant, Carolina Telephone and Tele- 
graph Company, is authorized to charge for said service a monthly 
rental of $5.00 per single line telephone at each of said two places. 

This the 9th day of June, 1937. 

(Signed) Stanley Winborne, 

Commissioner. 
Docket No. 543. 



Decisions and Adjustments of Complaints 329 

HEDUCTION IN TELEPHONE HAND SET CHARGE AND ADJUST^ 
MENT IN CHARGE FOR JACK AND PLUG EQUIPMENT OF THE 
CAROLINA TELEPHONE AND TELEGRAPH COMPANY. 

Order 

This matter came up at the suggestion of the Commission. 

In order that reductions might be made which would conform 
with reductions made by other telephone companies, the Carolina 
Telephone and Telegraph Company was requested by this Commis- 
sion to reduce its telephone hand set extra charge of 25c per month 
for a period of 18 months to 15c per month for a period of 18 months 
— the same to apply also on P.B.X. dial stations; and to eliminate 
the present monthly charge for jack and plug equipment and, in lieu 
thereof, to make a flat charge of $4.00 for each jack wired with three 
or four conductors. 

The Carolina Telephone and Telegraph Company having readily 
consented to the above reduction and adjustment; 

It is therefore ordered, That effective January 1, 1938, the extra 
hand set charge of the Carolina Telephone and Telegraph Company 
shall be 15c per month for a period of 18 months after which the 
additional charge of 15c shall be discontinued. Any subscriber who 
has already paid the extra hand set charge for 18 months, shall pay 
no extra charge, and any subscriber who has now paid less than 18 
months, shall cease to pay the extra charge when payments for 18 
months have been completed. 

It is further ordered, That effective January 1, 1938, there shall 
be a flat charge of $4.00 upon installation, for each jack wired with 
three or four conductors. The charge for an eight-conductor jack shall 
be $20.00. There shall be no further charge than that of the charge 
for installation. 

This 24th day of December, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1175. 

PETITION OF CENTRAL CAROLINA TELEPHONE COMPANY TO 
ESTABLISH AN EXCHANGE IN THE TOWN OF HEMP, MOORE 
COUNTY, NORTH CAROLINA. 

Order 
This case arises upon the application of the Central Carolina Tele- 
phone Company to establish an exchange in the town of Hemp, Moore 
County, North Carolina, on multi-party lines extended from its Car- 
thage Exchange, twelve miles distant. The town of Hemp has devel- 
oped very rapidly in recent years and, in response to the request of 
Hemp citizens, this company has made tentative plans to establish a 
separate telephone exchange at Hemp if and when approved by the 
Utilities Commission. 



330 N. C. Utilities Commission 

The rates proposed to be charged in this exchange appear to be 
reasonable and have been approved by the town of Hemp in reso- 
lution signed by its Mayor and Town Clerk and are as follows: 

Business Individual Line $3.50 

Business Four-Party Line 2.50 

Business Rural Line 2.25 

Residence Individual Line $2.25 

Residence Four-Party Line 1.75 

Residence Rural Line 1.75 

Evidence presented by the petitioner and the representatives of 
the town is sufficient proof to show that convenience and necessity 
will be enhanced by the establishment of this exchange; therefore, 
it is 

Ordered, That the petition be granted and that the rates proposed 
shall become effective upon the completion of the exchange and its 
connection with the exchange in Carthage and, it is 

Further ordered, That when the exchange is ready for operation 
that the company notify this Commission on the date operation begins 
and that the rates herein authorized have become effective. 

This 16th day of June, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 1330. 

CENTRAL ELECTRIC & TELEPHONE COMPANY, APPLICATION 
FOR AUTHORITY TO INSTALL A COMMON BATTERY TELE- 
PHONE SYSTEM AT MOCKSVILLE, N. C, AND TO ADJUST 
MONTHLY CHARGES. 

Order 

This proceeding was heard upon: the application of Central Elec- 
tric & Telephone Company, filed September 30, 1937, for authority to 
install a common battery telephone system at Mocksville, North Caro- 
lina, and to adjust monthly charges, upon the order entered herein 
on the 30th day of September, 1937, setting said application for hear- 
ing on the 28th day of October, 1937; upon the notice duly published 
as required by said order, proof of publication being on file and upon 
testimony taken at a hearing held on the 28th day of October, 1937, 
at which applicant was represented by L. D. Densmore, Division Man- 
ager, and Dr. W. M. Long, Attorney, Attorney Robert S. McNeill and 
J. P. Legrand appeared at said hearing representing Mocksville sub- 
scribers. After discussing the matter from all angles, it was agreed 
that in view of the fact that party line rates for residence subscrib- 
ers were being provided so that subscribers who objected to the 50c 
increase could obtain service without increase, that the application 
should be granted with the understanding that the applicant agrees 
not to make any application for increased rates at Mocksville for a 
period of one year. 

From all of which it appears that Central Electric & Telephone 
Company owns and operates a magneto telephone exchange at Mocks- 



Decisions and Adjustments of Complaints 331 

ville, Davie County, North Carolina; that this action was prompted by 
a signed petition representing over fifty per cent (50%) of the com- 
pany owned stations in Mocksville, requesting applicant to change the 
type of telephone system and equipment at Mocksville. This request 
was also made by the Lion's Club of Mocksville as evidenced by let- 
ters from that organization and other interested citizens. 

Applicant has agreed to comply with the requests of subscribers 
provided the following schedule of rates payable monthly in advance 
are approved effective on the first day of the month following the 
installation of a modern common battery telephone exchange in 
Mocksville, North Carolina. 

Monthly Rates 
Within Base Rate Area: 

Individual Line 2 Party Line 

Station Station 

Business $4.00 $0.00 

Residence 2.50 2.00 

Outside Base Rate Area : 

Rural Multi-Party Line Station 

Business $2.25 

Residence 2.00 

Above rates subject to 25c discount if paid on or before the 10th 
of the month. 

Based on subscribers retaining the class of service they have at 
present the application of the proposed net rates will increase 78 sub- 
scribers 25c per month and 78 subscribers 50c per month. Many of 
the subscribers will not be increased if two party line residence serv- 
ice is taken in lieu of individual line service. 

Applicant's testimony shows that it will be required to make a 
gross. expenditure of $13,142.56 in order to convert the exchange from 
magneto to common battery. 

The Commission finds there is no registered opposition to the pro- 
posed change of rates by subscribers; that a schedule of the present 
and proposed rates were published in Mocksville, that the improved 
type of service should be provided and that the proposed rates are fair 
and reasonable in this case. 

The Commission further finds, it was agreed by applicant that hand 
sets will be installed as station equipment for all common battery sub- 
scribers, without extra flat or monthly charge, and that wall and desk 
set equipment on common battery line be considered obsolete equip- 
ment. 

It was further agreed by applicant that rural line service will, 
after the conversion, be available to all subscriber-owned rural lines 
as at present. 

It is, there, considered and ordered by the Commission that the 
applicant, Central Electric & Telephone Company, is authorized and 
permitted to: 

Install a Common Battery Telephone System at its Mocksville, 
]>Torth Carolina, exchange. 



332 N. C. Utilities Commission 

It is FURTHER ORDERED that Local Exchange Tariff for Mocksville, 
North Carolina, setting forth rates, charges, etc., for said exchange, 
as shown by Exhibit C attached to the application herein, amended 
as herein indicated, be and the same is found to be fair and reason- 
able and is hereby approved as the authorized rates, charges, etc., 
for said exchange to be effective on the first day of the month fol- 
lowing the installation of a modern Common Battery Telephone ex- 
change in Mocksville, North Carolina. 

It is directed that applicant make such installation and conver- 
sion as soon as it can reasonably do so. 

This October 28, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 1103. 

PETITION OF CENTRAL ELECTRIC AND TELEPHONE COM- 
PANY FOR AUTHORITY TO SELL CERTAIN PROPERTY TO 
THE OLD TOWN TELEPHONE SYSTEM, INC. 

Order 

The Central Electric and Telephone Company in this case, pe- 
titions this Commission for authority to sell to the Old Town Tele- 
phone System, Inc., certain of its property situated in Forsyth County, 
to wit: Line 7600 which serves eight subscribers out of Winston- 
Salem, N. C. (names of subscribers set forth in petition); also that 
portion of the company's toll line from the end of the Winston-Salem 
Cable through Lewisville, N. C, to the Yadkin River. The purchase 
price is named at $1,000, and the effective date of sale, January 1, 
1938. 

Mr. J. L. Keigler, President of the Old Town Telephone System, 
Inc., joins in the petition. 

It is set forth in petition that it is of the opinion of the petitioners 
that the subscribers affected will be better served by the Old Town 
Telephone System than at present by the Central Electric and Tele- 
phone Company. In this opinion the Commission concurs, therefore, 
believing the sale advantageous to all concerned, and in the interest 
of the public, 

It is ordered. That authority is hereby granted to the Central Elec- 
tric and Telephone Company to sell to the Old Town Telephone Sys- 
tem, Inc., said property described above, the said sale to be effective 
January 1, 1938. 

This 20th day of December, 1937, Raleigh, N. C. 

Attest : 

Stanley Winborne, 
R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1174. 



Decisions and Adjustments of Complaints 333 

PETITION OF DENTON TELEPHONE COMPANY FOR AN IN- 
CREASE IN EXCHANGE RATES OWING TO THE ESTABLISH- 
MENT OF ALL NIGHT SERVICE. 

Order 

The Petitioner, the Denton Telephone Company of Denton, N. C, 
in petition filed August 13, 1937, asks for authority to increase its 
exchange rates on the grounds that it is establishing an all night 
service, thereby entailing a greater expense and a need for greater 
revenue. 

The petition sets forth that its present rates are: 

Residential 

One party $1.00 per month 

Two Party 75 per month 

Business 

One Party $1.25 per month 

Two Party 1.00 per month 

Desk telephone in business places, 25c higher. 

The petitioner applies for a raise of 25 cents per month on all 
phones up to and including the dollar rate, and a raise of 50 cents per 
month on phones, the charge for which is more than one dollar per 
month. 

On September 6, 1937, the Mayor and Aldermen of the Town of 
Denton gave its approval to the increased rates requested by the 
Telephone Company. Only two subscribers are known to this Com- 
mission who voiced any objection to the increased rates. These, how- 
ever, after being given ample opportunity, expressed no desire for a 
hearing. Therefore, with no tangible opposition before it and the 
Commission being of the opinion that the proposed rates are reasonable 
and in. line for service at similar exchanges, it is therefore 

Ordered, That the increased rates applied for in the petition are 
hereby granted, effective December 1, 1937. 

This 16th day of November, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. ComTnissioner. 

(Seal) Docket No. 1071. 

DURHAM TELEPHONE COMPANY PETITION FOR AUTHORITY 
TO ISSUE AND SELL $750,000.00 PRINCIPAL AMOUNT OF 
FIRST MORTGAGE 4% TWENTY-FIVE YEAR BONDS, SECURED 
BY INDENTURE OF MORTGAGE OF AND UPON ITS PROPER- 
TIES AND THE RENTS, ISSUES, AND PROFITS THEREOF AND 
TO APPLY THE PROCEEDS OF THE SALE OF SAID BONDS TO 
THE RETIREMENT OF OUTSTANDING OBLIGATIONS AND 
OTHER PURPOSES AS STATED IN SAID PETITION. 

Order 
Winborne, Commissioner: 

This cause comes on to be heard before the Utilities Commission 
upon the petition of the Durham Telephone Company for authority to 



334 N. C. Utilities Commission 

issue and sell $750,000.00 principal amount of its First Mortgage 4% 
Twenty-five Year Bonds, to execute and deliver its indenture of 
mortgage for the purpose of securing the said bonds and any other 
bonds that may be issued thereunder at any subsequent date pursuant 
to authority that may be granted, and to apply the proceeds of the 
sale of said bonds to the redemption of certain bonds of the company 
now outstanding, and other specified purposes, and to amortize over 
the life of said bonds certain items of premium, discount, and expenses, 
all as hereinafter more fully set forth. 

The petition in this cause was filed on the eleventh day of Decem- 
ber, 1936, and the same was set for hearing on Monday, December 21, 
1936, at eleven o'clock A. M., in the office of the Utilities Commission 
in Raleigh, North Carolina. At said time and place the petitioner, 
Durham Telephone Company, appeared through its President, T. D. 
Wright; General Manager, E. H. Danner; and attorney, B. M. Watkins, 
all of Durham, North Carolina, and offered evidence in support of 
its petition. 

From the petition, treated as an affidavit, and other evidence 
offered at the hearing, it appears that Durham Telephone Company 
is a corporation created, organized, and existing under and by virtue 
of the laws of the State of North Carolina, with its principal office and 
place of business in the City of Durham, North Carolina, and that it 
is duly authorized and empowered to conduct a telephone business 
in the State of North Carolina; and that the petitioner owns and is 
engaged in the business of operating telephone plants, exchanges, and 
properties in and about the City of Durham, in Durham County, North 
Carolina, and that the petitioner is a public utility subject to regula- 
tion as provided by law by the North Carolina Utilities Commission. 

It appears further from the evidence that the authorized capital 
stock of the petitioner consists of 10,000 shares of 7% Cumulative 
Preferred Stock, having a par value of $100.00 per share, and 15,000 
shares of Common Stock without par value, of which there has been 
issued, and is now outstanding 2,500 shares of said Preferred Stock 
and 10,000 shares of said common stock. 

It further appears from the evidence that the petitioner has out- 
standing $593,500.00 principal amount of its First Mortgage 6% Gold 
Bonds, dated February 1, 1933, due February 1, 1953, and issued and 
secured by an indenture of mortgage, of even date therewith, con- 
stituting a lien on the property of the petitioner, and that the said 
outstanding 6% bonds are, by their terms, subject to redemption, at 
the option of the petitioner, on any interest payment date (February 
1st or August 1st) prior to maturity upon payment of the principal 
amount thereof, plus a premium of 5% of such principal amount if 
redeemed on or before February 1, 1943, together with accrued interest 
thereon to the date of redemption. 

It further appears from the evidence that the petitioner has recently 
made certain additions to its telephone plant and property in placing 
extensions of underground conduit system and placing of cable in the 
Northwest section of the City of Durham, and in the installation of 



Decisions and Adjustments of Complaints 335 

additional equipment in the central office, etc., at a cost of $54,718.88 
to date; and that in view of the fact that it did not have on hand 
money available for meeting the costs of the same, it has borrowed 
the sum of $42,500.00 and used the same in paying a part of such costs, 
and is now indebted in said amount and desires to pay the same. 

It further appears from the evidence that the petitioner has listed 
among its proposed projects for the year 1937 the extension of an 
underground conduit and cable system to furnish relief for aerial 
cable now serving North Mangum Street and Roxboro Road, together 
with additional central office equipment and other equipment, at an 
estimated cost of $40,750.00, and that it does not have money on hand 
to pay the costs of said proposed projects when and if made. 

It further appears from the evidence that during the period from 
February 1, 1933, to September 30, 1936, the petitioner has made net 
additions to its telephone plant and property in and about the City 
of Durham, amounting to $162,656.80, including those recently made 
and for which an open account indebtedness has been incurred as 
mentioned above, none of which additions have been made the basis 
for the issuance of securities by the petitioner. In this connection it 
appears from the evidence that, in addition to the above expenditures 
for improvements, the petitioner has, during the same period, retired 
$56,500.00 principal amount of its said 6% bonds which were originally 
issued in the aggregate principal amount of $650,000.00. 

It further appears from the evidence that the petitioner now desires 
to issue and sell to Telephone Bond and Share Company, of Kansas 
City, Missouri, (a company now owning common stock of the peti- 
tioner), at a price of 100% of the principal amount thereof, plus 
accrued interest to the date of delivery, $750,000.00 principal amount 
of its First Mortgage 4% Twenty-five Year Bonds, secured by inden- 
ture of mortgage constituting a first lien on all of its properties and 
assets and the rents, issues, and profits thereof, and apply the proceeds 
of the sale of the said 4% bonds to the redemption and cancellation of 
the said 6% bonds, the payment of the said $42,500.00 of open account 
indebtedness, together with accrued interest thereon, and the balance 
for working capital, and further desires for Harris Trust and Savings 
Bank, of Chicago, Illinois, to be named as corporate trustee, and 
Harold Eckhart to be named as individual trustee in the indenture of 
mortgage securing said bonds. 

It further appears from the evidence that the interest upon the 
proposed new issue of $750,000.00 principal amount of bonds will 
amount to approximately $6,000.00 less than the interest now being 
paid on the bonds outstanding at the present time, and that in addition 
thereto, the petitioner will have additional funds useful and necessary 
in paying the costs of additions to its telephone plant and property, 
and that this should inure to the benefit of the petitioner and its 
subscribers for service. 

Upon consideration of the whole case, and with the understanding 
and provision that nothing herein contained shall be construed as 
either a representation or guarantee of the State of North Carolina or 



336 N. C. Utilities Commission 

of the Utilities Commission of said State that the property value of 
the petitioner is equal to the face amount of the bond issue prayed 
for, or that the bonds when issued will be worth par or any amount 
in excess thereof, and with the further understanding that nothing 
herein contained shall be construed to imply any guarantee or obliga- 
tion as to such securities on the part of the Utilities Commission or of 
the State of North Carolina, this Commission is of the opinion and 
finds: 

(a) That the application of the petitioner filed in this case is in 
proper form and in compliance with law and all existing rules and 
regulations; 

(b) That the issuance of the said 4% bonds is for lawful objects 
within the corporate purposes of the petitioner, is compatible with 
the public interests, is appropriate for, and consistent with, the proper 
performance by the petitioner of its service to the public as a public 
utility, and is reasonable and appropriate for such purposes; and 

(c) That the prayer of the petition should be granted except with 
respect to the deposit of funds in the amount of $50,000.00 with Harris 
Trust and Savings Bank. 

It is, therefore, now ordered as follows: 

Ordered: 1. That for the purpose of providing for the issuance of 
and securing its First Mortgage 4% Twenty-five Year Bonds herein- 
after authorized to be issued, the petitioner, Durham Telephone Com- 
pany, is hereby authorized to execute and deliver a new indenture of 
mortgage, to be dated as of December 1, 1936, between the petitioner 
and Harris Trust and Savings Bank (of Chicago, Illinois) and Harold 
Eckhart, as Trustees, and to cause the said indenture of mortgage to 
be executed by the said Trustees and registered and/or filed in each 
and every public office necessary to the creation and maintenance of 
the lien thereof, which indenture of mortgage will provide for the 
issuance of bonds without limit as to principal amount, except as 
therein specified, and will mortgage and pledge all of the property 
(including franchises, licenses and easements for the use and occupancy 
of streets, highways and public places) and assets of the petitioner, 
of every kind and character, now owned or hereafter acquired (except- 
ing only stocks, securities and cash at any time owned by the petitioner 
which are not actually deposited or pledged under the said indenture 
of mortgage, or specifically required by the terms of the said indenture 
of mortgage so to be deposited or pledged), and the rents, issues and 
profits thereof, for the security of the First Mortgage 4% Twenty-five 
Year Bonds of the petitioner hereinafter authorized to be issued (being 
the initial series of bonds to be issued under the said indenture of 
mortgage), and all other bonds at any time outstanding under the 
said indenture of mortgage; provided that no bonds in excess of the 
$750,000.00 principal amount hereinafter authorized to be issued shall 
be issued under the said indenture of mortgage without further 
authorization from the North Carolina Utilities Commissioner, or such 
other official or public body as shall at the time have jurisdiction over 
the issuance of such bonds under the laws of the State of North 
Carolina. 



Decisions and Adjustments of Complaints 337 

The said new indenture of mortgage shall contain provisions for a 
special trust fund, to be held and administered by Harris Trust and 
Savings Bank (in its capacity as Trustee under the said indenture of 
mortgage), and the petitioner shall, in and by the said indenture of 
mortgage, covenant to deposit with the said Trustee, on or before the 
first day of December, 1937, and on or before the first day of December 
in each year thereafter so long as any of the 4% bonds herein author- 
ized to be issued shall remain outstanding, a sum equal to 1% of the 
principal amount of all of the said 4% bonds then outstanding. The 
said indenture of mortgage shall provide that such deposits may be 
made in cash and/or, at the option of the petitioner, in the said 4% 
bonds, taken at the principal amount thereof and accompanied by all 
unmatured interest coupons, and that cash deposited to the credit of 
the said special trust fund may be withdrawn by the petitioner at any 
time within two (2) years after deposit thereof to reimburse the 
petitioner to the extent of seventy-five per cent (75%) of the actual 
cash expenditures made by the petitioner after December 1, 1936, for 
physical property additions, and that cash not so withdrawn within 
two (2) years after deposit thereof shall be applied by Harris Trust 
and Savingss Bank, as Trustee under the said indenture of mortgage, 
to the purchase and retirement of 4% bonds, at not exceeding the re- 
demption price then in effect, or to the redemption of such bonds. 

Ordered: 2. That the petitioner, Durham Telephone Company, is 
hereby authorized to issue, under the terms and provisions of the new 
indenture of mortgage hereinabove authorized to be executed and 
delivered, its First Mortgage 4% Twenty-five Year Bonds (being the 
initial series of bonds issuable under the said indenture of mortgage) 
in the aggregate principal amount of $750,000.00, and to sell the said 
bonds in the principal amount aforesaid to Telephone Bond and Share 
Company at a price of 100% of the principal amount thereof, plus 
accrued interest thereon at the rate of 4% per annum from the date of 
said bonds to the date of delivery thereof. The said bonds shall be 
dated December 1, 1936, shall be expressed to mature on December 1, 
1961, shall bear interest at the rate of 4% per annum, payable semi- 
annually on the first day of June and December in each year, shall 
be redeemable, as a whole or in part, at any time prior to maturity, 
at the option of the petitioner or through the operation of the special 
trust fund provided for in the said indenture of mortgage, on sixty 
(60) days' published notice and upon payment of the principal amount 
of the bond or bonds to be redeemed, the interest accrued thereon to 
the date of redemption, and a premium equal to 6% of such principal 
amount if such redemption be effected on or before December 1, 1941; 
5 % of such principal amount if such redemption be effected thereafter 
and on or before December 1, 1946; 4% of such principal amount if 
such redemption be effected thereafter and on or before December 1, 
1951; 2% of such principal amount if such redemption be effected 
thereafter and on or before December 1, 1956; 1% of such principal 
amount if such redemption be effected thereafter and on or before 
December 1, 1960, and thereafter without premium, and shall be pay- 
able, both as to principal and interest, at the office of Harris Trust and 



338 N. C. Utilities Commission 

Savings Bank, or its successor in trust under the said indenture of 
mortgage, in the City of Chicago, Illinois, in lawful money of the 
United States of America. The said bonds shall be otherwise in the 
form set out in the said indenture of mortgage as the same shall be 
prepared and executed by the petitioner. 

Ordered: 3. That the petitioner, Durham Telephone Company, is 
hereby authorized to apply the net proceeds to be derived from the 
sale of the said First Mortgage 4% Twenty-five Year Bonds to the 
following purposes: 

(a) The redemption and cancellation of the said $593,500.00 prin- 
cipal amount of outstanding First Mortgage 6% Gold Bonds, Series A, 
dated February 1, 1933, at a price of 105% of such principal amount, 
plus accrued interest to the date of redemption; 

(b) The payment of the said $42,500 of open account indebtedness, 
together with the accrued interest thereon; and 

(c) The balance for working capital. 

Ordered: 4. That the petitioner, Durham Telephone Com^pany, is 
hereby authorized to amortize out of income over the life of the 4% 
bonds herein authorized to be issued the following items: 

(a) The premium to be paid upon redemption of the said out- 
standing 6% bonds, amounting to 5% of the principal amount of such 
bonds; 

(b) The sum of $6,056.49 representing the unamortized portion of 
the debt discount and expense incurred at the time the said outstanding 
6% bonds were issued; and 

(c) All other expenses incurred by the petitioner in connection 
with the issuance of the new 4% bonds. 

Ordered: 5. That the petitioner, Durham Telephone Company, 
shall keep separate true and accurate accounts showing the receipt 
and application in detail of the proceeds of the sale of the bonds herein 
authorized to be issued and, within ninety (90) days after the sale of 
said bonds, shall make a verified report to the Utilities Commissioner 
showing the sale of the said bonds, the terms and conditions of such 
sale, the amount of moneys realized from such sale, and the use and 
application of such moneys to the date of such report. 

Ordered: 6. That nothing herein contained shall be construed or 
considered as a finding, representation, or guarantee by the Commission 
or the State of North Carolina that the property of the petitioner is 
equal in value or amounts to as much as the face amount of the bond 
issue hereinabove permitted under the terms of this order, or that 
said bonds when issued will have a value of par or any amount in 
excess thereof; and further that nothing herein contained shall be 
considered as a guarantee or obligation or even construed to imply 
any guarantee or obligation as to such securities on the part of the 
State of North Carolina or the Utilities Commission of said State; and 
further that nothing in this order contained shall be considered as a 



Decisions and Adjustments of Complaints 339 

finding by the Commissioner of the value for rate making purposes 
of the properties of the petitioner. 

Ordered: 7. That this order shall take effect on this date. 

This the 23d day of December, 1936. 

Stanley Winborne, 

Utilities Commissioner. 
Docket No. 909. 

DURHAM TELEPHONE COMPANY APPLICATION FOR APPROV- 
AL OF CONTRACT WITH TELEPHONE DIRECTORY AND 
ADVERTISING COMPANY FOR THE SOLICITATION OF ADVER- 
TISEMENTS AND PRINTING OF TELEPHONE DIRECTORIES. 

Order 
Winborne, Commissioner: 

This cause comes on to be heard before Stanley Winborne, Utilities 
Commissioner of the State of North Carolina, on Friday, the 23rd day 
of July, 1937, upon the petition of Durham Telephone Company for 
approval nunc pro tunc as of date of March 24, 1934, of a contract in 
writing entered into with Telephone Directory and Advertising Com- 
pany under date of March 24, 1934. 

The petition in this cause is made and filed pursuant to the require- 
ments of Section 1112 (17) of the Consolidated Statutes of North 
Carolina, and contains as Exhibit A a true copy of a contract that 
was made and entered into with Telephone Directory and Advertising 
Company, a corporation, under date of March 24, 1934. 

The contract for which approval of the Commissioner is sought 
provides for the solicitation of advertisements and the printing of 
telephone directories for Durham Telephone Company by Telephone 
Directory and Advertising Company after the termination in June, 
1936, of a contract formerly existing between Durham Telephone 
Company and L. M. Berry and Company, and to continue for a period 
of three years from and after said operative date, and thereafter from 
year to year, subject to the right of cancellation by either party upon 
twelve months' written notice to the other party. 

From the petition, treated as an affidavit, and the statements and 
representations of officers and agents of the company, it appears that 
Telephone Directory and Advertising Company is a corporation, the 
common stock of which is owned by Telephone Bond and Share Com- 
pany, which latter company (Telephone Bond and Share Company) is 
also an owner of common stock of Durham Telephone Company, and 
that therefore Telephone Directory and Advertising Company and 
Durham Telephone Company are affiliates within the meaning of said 
term as used in Chapter 21 of the Consolidated Statutes of North 
Carolina, and more particularly Section 1112 (17); and it further 
appears that Durham Telephone Company entered into said contract 
as of said date of March 24, 1934, in good faith, without realizing that 
the provisions of Section 1112 (17) were applicable to said contract, 
and that the same would have to be approved by the Utilities Com- 
missioner of the State of North Carolina before the same could become 



340 N. C. Utilities Commission 

effective; and it appears further that Durham Telephone Company has 
not intended to ignore the provisions of said statute or to in anywise 
act arbitrarily in the conduct of its business, but that it simply over- 
looked the provisions of said statute and its application to said contract, 
and now prays for an order nunc pro tunc as of date of March 24, 
1934, to be entered in this cause approving said contract. 

From the petition, treated as an affidavit, and the statements and 
representations of officers and agents of the company, it appears that 
Durham Telephone Company has issued two directories under the 
provisions of said contract, the first as of date of December 1, 1936, 
and the second as of date of June 1, 1937, and has received its share 
of the proceeds from the same the sum of $878.25, which represents 
net profit; and it further appears that said contract is advantageous 
to Durham Telephone Company and that it will be for the best interest 
of the petitioner for said contract to be approved. 

Upon consideration of the whole matter, the undersigned Com- 
missioner is of the opinion and finds: 

(a) That the contract entered into between Durham Telephone 
Company and Telephone Directory and Advertising Company is a 
fair and reasonable contract and advantageous to Durham Telephone 
Company in the publication of its telephone directories. 

(b) That Durham Telephone Company entered into said contract 
as of date of March 24, 1934, in good faith, without realizing that the 
provisions of Section 1112 (17) were applicable to said contract and 
that said contract would have to be submitted to and approved by the 
Utilities Commissioner of the State of North Carolina before the same 
could be effective, and that therefore the same should be approved 
by an order entered nunc pro tunc as of date of March 24, 1934. 

It is, therefore, now, ordered, That the contract entered into by 
and between Durham Telephone Company and Telephone Directory 
and Advertising Company, a corporation, under date of March 24, 
1934, a true copy of which is attached to the petition filed in this cause 
and marked "Exhibit A," be, and the same hereby is, in all respects 
approved, and for the purpose of establishing the effective date of said 
approval as the date of the execution of said contract on March 24, 
1934, this order is entered nunc pro tunc as of date of March 24, 1934, 
and the publication of directories as of date of December 1, 1936, and 
of June 1, 1937, by Durham Telephone Company under the provisions 
of said contract are considered as having been done under the terms 
of a contract approved by the Utilities Commissioner of the State of 
North Carolina, as provided by law. 

This 23rd day of July, 1937. 

(Signed) Stanley Winborne, 

Utilities Commissioner 
State of North Carolina. 
Docket No. 1054. 



Decisions and Adjustments of Complaints 341 

APPLICATION FOR A TEMPORARY CERTIFICATE OF CONVEN- 
IENCE AND NECESSITY FOR THE OPERATION OF THE TELE- 
PHONE EXCHANGES IN THE TOWNS OF WADESBORO AND 
MORVEN IN ANSON COUNTY, NORTH CAROLINA, BY W. 
HENRY LILES, TRUSTEE. 

Order 
This matter comes before the Commission upon the application 
of W. Henry Liles, Trustee, asking for a temporary certificate of con- 
venience and necessity for the operation of the Telephone exchanges 
in the towns of Wadesboro and Morven in Anson County, North Caro- 
lina, pending the formation of a corporation which intends to apply 
for a permanent certificate of convenience and necessity. It is made 
to appear to the Commission that several citizens within the towns 
of Wadesboro and Morven have purchased the telephone properties of 
the Southern Appalachian Telephone & Telegraph Co., located in 
Wadesboro and Morven, and that said properties have been conveyed 
to W. Henry Liles, Trustee, to be held by him until the formation of a 
corporation which will take over said exchanges and properties and 
operate same in the name of the corporation. 

The Commission further finds as a fact that said exchanges are 
now in operation and that it is imperatively necessary that said opera- 
tion continue without interruption, pending the formation of the 
corporation. 

Wherefore, it is ordered, That a temporary certificate of con- 
venience and necessity be and the same is hereby issued authorizing 
W. Henry Liles, Trustee, to continue the operation of the Telephone 
exchanges at Wadesboro and Morven, in Anson County, North Caro- 
lina, until further order of this Commission. 
This the 9th day of October, 1937. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
Docket No. 1113. 

PETITION OF MOORESVILLE TELEPHONE COMPANY FOR AU- 
THORITY TO ISSUE STOCK. 

Order 

This cause came before the Commission upon the application of 
the Mooresville Telephone Company for authority to issue $12,000 in 
stock to its present stockholders. 

The applicant was represented by Hon. Zeb V. Turlington, attorney, 
of Mooresville, North Carolina, and at the hearing there appeared Dr. 
Voils, Manager of the said Company. 

From the statements of Dr. Voils and from the records offered, the 
following facts are found: 

That on December 31st, 1937, the outstanding common stock 
amounted to $12,000, and the same amount is outstanding today; that 
the applicant Company was organized in 1900, when Mooresville had 
a population of approximately 1,500 people, whereas today the popu- 



342 N. C. Utilities Commission 

lation is over 6,000; that there has been a steady expansion in the 
telephone properties and profits have been used in the enlargement 
of the plant until the surplus exceeds the capital stock by nearly 
$5,000; that this surplus has been accumulated by economical man- 
agement and small salaries paid the officials of the Company, instead 
of having been paid to the stockholders in large dividends. 

It is further found as a fact that the present exchange and distribu- 
tion system is inadequate for the present and future needs of the 
Town of Mooresville and that additional capital is needed for this 
expansion. 

Upon the foregoing facts, the applicant contends that, under present 
conditions, it is difficult, if possible to persuade the present stock- 
holders to provide sufficient capital for what is needed, and due to the 
smallness of the exchange and the hazards of storms which might 
destroy telephone properties, it is not practicable to negotiate a loan 
for the money needed. It was further contended that the present 
stockholders feel that it is unfair to them that the profits which have 
been made by close economical management should be reinvested in 
the Company and that they have nothing to show for the savings in 
the way of stock, and contend that it is only fair that they be issued 
stock from surplus in the amount of $12,000. 

It is further contended by the applicant that if this stock dividend 
is allowed that it is believed that the present stockholders can be 
persuaded to put up in cash the necessary amounts for the needed 
improvements by buying additional stock. 

Upon consideration of the testimony, record, exhibits and repre- 
sentations made to the Commission, and upon an examination of the 
salaries paid over a period of the last eight years, some of the salaries 
truly being nominal salaries and none large, I am of the opinion that 
there is justice in the contention of the applicant and its stockholders 
that there should be some reward for thrift and economy, even in a 
public utility, and that where money has been frugally saved and 
reinvested in the plant, when it could have been paid to the stock- 
holders, that the stockholders are entitled to have something to show 
for their reinvestment. Upon an investigation of the financial condi- 
tion of the Company, however, I am of the opinion that the amount 
applied for is more than is deserved and that the stockholders should 
be satisfied with one-half that amount, or $6,000. 

Wherefore, it is ordered, That the Mooresville Telephone Com- 
pany be and the same is hereby directed to issue to its stockholders 
from surplus, according to their respective stock interest, the aggregate 
amount of $6,000, and at the proper time to apply for an increase in 
capital stock and to sell such additional capital stock authorized for 
cash at par value. 

This the 27th day of September, 1938. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
Docket No. 1403. 



Decisions and Adjustments of Complaints 343 

PETITION OF THE MORRIS TELEPHONE COMPANY, INCORPO- 
RATED, FOR AUTHORITY TO ISSUE AND SELL TWENTY-FIVE 
THOUSAND ($25,000.00) DOLLARS IN FIVE PER CENT (5%) 
PREFERRED STOCK FOR THE PURPOSE OF INSTALLING AN 
AUTOMATIC EXCHANGE AND GENERALLY OVERHAULING 
THE COMPANY'S TELEPHONE PLANT. 

Order 

Now comes the Morris Telephone Company, Incorporated, of Rox- 
boro, Person County, North Carolina, and makes application to issue 
not in excess of $25,000.00, 5% preferred stock, such stock to have a 
par value of $100.00 per share. The purpose of the issuance of said 
preferred stock is to acquire funds with which to purchase and pay 
the costs and expenses of installing in its Roxboro Exchange an auto- 
matic telephone system. The present estimated cost of such equipment 
and its installation is approximately $22,000.00, and it is proposed to 
issue only the amount of stock that will be required to pay for the 
equipment and its installation. 

The petitioner pledges itself that the telephone rates now in force 
in its Roxboro Exchange for common battery telephones will not be 
increased by reason of installation of the automatic dial system; and 
further states to the Commission that it published and announced 
several months ago its intention to install such system in the Roxboro 
Exchange, the local newspaper giving wide publicity to such announce- 
ment; that the plan has been generally approved and has no known 
opposition from any source; that the exchange from manual to auto- 
matic system is compatible with the public interest and will enable 
the company to better serve the public. 

The petitioner files a financial statement with its application, in 
which it shows that its total present corporate assets are $47,489.83; 
that its present capital stcok is $13,400.00; that it has a surplus of 
$18,320.08; and that the bills and accounts payable and accrued liabili- 
ties do not exceed $2,000.00; that it has a depreciation reserve of 
$11,745.38; and that its revenues from operation for the year ending 
December 31, 1936, was $19,924.55; and that after paying all expenses 
in connection with operating the exchange, it had a net profit of 
approximately $2,200.00. 

From the foregoing representations, it appears that the company's 
proposal is not excessive or unreasonable; and since no increase in 
rates is demanded in connection with the issue of preferred stock, 
it is deemed to be in the public interest and necessary for the proper 
operation of the service; and it is, therefore. 

Ordered that the petition be granted and that this authority shall 
be effective as of the date of this order. 
This 29th day of October, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1116. 



344 N. C. Utilities Commission 

APPLICATION OF NORFOLK & CAROLINA TELEPHONE & TELE- 
GRAPH CO. FOR PERMISSION TO REPLACE THE PRESENT 
MANUAL TELEPHONE EXCHANGE IN THE TOWN OF HERT- 
FORD, N. C, WITH AN AUTOMATIC DIAL SYSTEM. 

Order 

This matter comes before the Commission upon an application of 
the Norfolk & Carolina Telephone & Telegraph Co., of Elizabeth City, 
N. C, asking that it be allowed to replace the present manual tele- 
phone system with an up-to-date automatic dial system in the Town 
of Hertford, N. C; and further asking that upon completion of the 
installation of the automatic dial system that the present rental rates 
for telephone service, with the exception of extension charges, be 
increased 25c per telephone per month. 

In support of the application there has been filed with this Com- 
mission a resolution passed by the Board of Commissioners of the 
Town of Hertford, on Friday, 20th day of May, 1938, duly signed by 
Mayor Silas M. Whedbee and W. G. Newby, Clerk, in which resolution 
it is set out that it is the desire of the Governing Body of said Town 
of Hertford that the petition of the Norfolk & Carolina Telephone & 
Telegraph Co. be granted; and that in consideration of the recognized 
additional expense incident to the installation of the automatic dial 
system, the 25c per month per telephone increase in rental charges, 
except on extensions, is approved by said board. 

It has been further made to appear that more than 50% of the 
subscribers of the Hertford Exchange have approved the installation 
of the automatic dial system and also the increase in rental charges 
aforesaid. 

Whereupon, it is ordered, That the Norfolk & Carolina Telephone 
& Telegraph Co. is hereby authorized to install a modern automatic 
dial telephone system in the Town of Hertford, N. C, to replace the 
present manual system. 

It is further ordered. That when the installation of the automatic 
dial system is completed that the said Norfolk & Carolina Telephone 
& Telegraph Co. shall increase its rental rates 25c per telephone per 
month, except there shall be no increase in the present rates for 
extension telephones. 

This the 29th day of August, 1938. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 

Docket No. 1314. 

APPLICATION OF NORFOLK AND CAROLINA TELEPHONE AND 
TELEGRAPH COMPANY FOR APPROVAL OF CONTRACT WITH 
THE UNITED STATES GOVERNMENT. 

Order 

Whereas, it has been made to appear to this Commission that the 
Norfolk and Carolina Telephone and Telegraph Company desires to 
enter into a contract with the United States Government to furnish 



Decisions and Adjustments of Complaints 345 

a telephone circuit between the United States Coast Guard Head- 
quarters' office at Elizabeth City, North Carolina, and the Coast Guard 
Station at Nags Head, North Carolina, in consideration, among other 
things set out in the contract, copy of which has been filed with the 
Commission, that the United States Government will provide for the 
use of the Telephone Company a circuit between Nags Head and 
Hatteras and intermediate points. 

It further appearing to this Commission that from the stipulation 
in said contract that same may be terminated at the end of the fiscal 
year ending June 30, 1939, or at the end of any fiscal year thereafter, 
at the option of either party, upon thirty days' notice before the end 
of any fiscal year, that it is possible that should the United States 
Government elect to terminate said contract within a few years after 
the Norfolk and Carolina Telephone and Telegraph Company has 
expended the amount necessary to provide the service, which will be 
considerable, that the circuit will no longer be needed between Eliza- 
beth City and Nags Head Coast Guard Station, and that to require the 
Norfolk and Carolina Telephone and Telegraph Company to maintain 
a circuit and service between Nags Head and Hatteras after the con- 
tract in question has been terminated, would be a burden upon the 
other subscribers. 

Wherefore, it is ordered, that the said Norfolk and Carolina 
Telephone and Telegraph Company is hereby authorized to enter into 
said contract with the United States Government, upon the condition 
that if and when the said contract with the United States Government 
is terminated said Norfolk and Carolina Telephone and Telegraph 
Company shall have the right to discontinue service between Nags 
Head and Hatteras and intermediate points, at its option. 

This the 27th day of August, 1938. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 

Docket No. 1398. 

APPLICATION OF J. LEE KEIGER TO TRANSFER THE AUTHOR- 
ITY TO OPERATE A TELEPHONE COMPANY UNDER ORDERS, 
DATED JUNE 9 AND AUGUST 26 IN THE NAME OF THE OLD 
TOWN TELEPHONE SYSTEM, INCORPORATED. 

Order 
The Commission, having issued certain orders, referred to above 
in connection with the telephone service to be constructed, acquired 
and operated by J. Lee Keiger and/or the Old Town Telephone System, 
Inc., it has now become necessary to extend this authority for conduct- 
ing telephone business to and into the vicinity of Bethania. At the 
time that this application was made, the Central Electric and Telephone 
Company had telephone service in Bethania. Since that time, Mr. 
Keiger has acquired the rights by purchase from the Central Electric 
and Telephone Company and now desires to begin construction in the 
Bethania community and since the Commissioner is familiar with the 
facts leading up to the transaction and that the Manager of the said 



346 N. C. Utilities Commission 

Central Electric and Telephone Company has advised us of his accept- 
ance of Mr. Keiger's offer and Mr. Keiger has advised us of the 
payment in full of the amount involved, 

It is hereby ordered, That the Old Town Telephone System, Inc., 
be and the same is hereby authorized to begin operation in the Town 
of Bethania and to construct telephone lines and install telephones in 
that community to such extent as it may meet the demand of the 
people of that section. 

This the 4th day of February, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 718. 

APPLICATION OF THE CITIZENS AND RESIDENTS OF FORSYTH 
COUNTY IN THE BROOKSTOWN SECTION FOR TELEPHONE 
SERVICE FROM THE OLDTOWN TELEPHONE COMPANY. 

Order 

This cause arises upon the application of citizens of Forsyth 
County living along the Brookstown road who desire telephone service 
from the Oldtown Telephone System in order to be able to communi- 
cate with Winston-Salem without having to telephone through Rural 
Hall, an exchange of another company, as heretofore the people in 
this section have had telephone service from the Pfafftown Telephone 
Company and the Pfafftown Telephone Company had connection 
through Rural Hall exchange with the Central Electric & Telephone 
Company, and the Central Electric & Telephone Company has toll 
connection with Winston-Salem, exchange of the Southern Bell Tele- 
phone & Telegraph Company. The Oldtown Telephone System has 
lines in the vicinity of the Brookstown section. 

The lines of the Pfafftown Telephone Company have been in bad 
condition for some years and witnesses Beroth and Yarborough testified 
to the effect that they had been unable to have telephone service for so 
long that it had become injurious to Mr. Beroth's lumber business. 
Mr. Beroth further stated that he was a stockholder in the Pfafftown 
Telephone Company and had discussed this question with the other 
officials of the company for some time and that the manager of the 
company knew the situation but was reluctant to give his consent 
without the unanimous approval of all the persons who had at one 
time been mutual stockholders in the Pfafftown Company. Mr. Beroth 
also stated that the Pfafftown Telephone Company was not in financial 
condition to do any construction; that its telephones were owned by 
the individual subscribers and that there had been only small amounts 
paid in from time to time for the upkeep of the property until a storm 
did considerable damage a few years ago, after which the stockholders 
did not feel able to make the necessary repairs to put the company's 
lines in condition. 

A petition was filed with the Commission, signed by more than 
thirty (30) persons, asking the relief. This petition was advertised 



Decisions and Adjustments of Complaints 347 

in the papers in Winston-Salem, circulating in the territory affected, 
and notice was served upon the Central Electric & Telephone Company, 
the Southern Bell Telephone & Telegraph Company, and also upon 
the Pfafftown Telephone Company, these being all the telephone com- 
panies operating in that vicinity which would be affected by this 
application. 

From the evidence presented, referred to in the foregoing, it 
appears tha public convenience and necessity will be enhanced by the 
granting of this application; therefore, it is 

Ordered that the application be granted and that the Oldtown 
Telephone System is hereby authorized to extend its lines from the 
intersection of Route 421 and Route 67, at or near the residence of 
I. C. Shore to Brookstown on said Highway 421 and from a point on 
Route 421 at Dusty Rhodes' Filling Station on the Pfafftown-Clemmons 
road to Conrad's Filling Station. 

This, the 13th day of May, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 984. 

REDUCTION ON HAND-SET EQUIPMENT: DIFFERENTIAL ON 
PBX DIAL SYSTEM AND JACK AND PLUG EQUIPMENT. 

Agreed Order 

Following a conference between a representative of the Southern 
Bell Telephone and Telegraph Company and this Commission, the 
Company has agreed to an adjustment in the following charges: 

1st. To furnish hand-set telephone equipment where requested 
by subscriber at a rate of fifteen cents (15c) per month for eighteen 
consecutive months for each set from first billing date following 
installation, in addition to the rate applicable to the service or facilities 
furnished, provided that effective on bills dated on and after November 
1st, 1937, the fifteen cents (15c) additional charge will be discontinued 
for all subscribers who have been billed the said charge for eighteen 
consecutive months or more or who have been billed a total of two 
dollars and seventy cents ($2.70) in continuous charges from first 
billing date following installation in the same exchange. 

No credit for fractional part of month will be made. 

2nd. To eliminate entirely the present differential of twenty-five 
cents (25c) a month on PBX dial station. 

3rd. To eliminate the present recurring monthly charge for Jack 
and Plug Equipment and to make the charge for such equipment 
Four Dollars ($4) flat for three or four conductors and Twenty Dollars 
($20) flat for eight conductors at the time said conductors are in- 
stalled; provided that all subscribers whose payments now aggregate 
the amounts to be hereafter charged for their respective number of 
conductors shall pay no further for said Jack and Plug Equipment. 
But those whose payments have not amounted to the flat charge herein 



348 N. C. Utilities Commission 

provided shall continue to pay such recurring monthly charges until 
the sum of their payments shall equal the flat charges herein set out. 

It is further agreed that the changes above agreed to shall become 
effective as of the billing dates in November, 1937. 

It is also further agreed that the Southern Bell Tel. & Tel. Co. 
will file amended schedules including the changes herein agreed to. 

This the 8th day of October, 1937. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
Docket No. 1111. 

PETITION OF SOUTHERN BELL TELEPHONE AND TELEGRAPH 
COMPANY FOR AUTHORITY TO CHANGE EXCHANGE AT 
APEX TO AUTOMATIC SYSTEM. 

Order 
This matter comes before the Commission upon a petition of the 
Southern Bell Telephone and Telegraph Company asking that it be 
permitted to comply with a petition of its business subscribers at its 
Apex Exchange asking that the exchange there be converted from the 
present magneto type to an automatic system. In this petition of 
said subscribers, the town council of Apex joins and sets forth that it 
recognizes that the installation of the new system will require a 
considerable expenditure of money not justified by the schedule of 
rates now in effect, and upon installation and operation of the auto- 
matic system, it deems the following schedule of rates fair and equita- 
ble and these rates set forth below are given its official endorsement 
and approval: 

Bus. Ind. Line $3.25 Res. Ind. Line $2.00 

Bus. 2-Party 2.75 Res. 2-Party 1.75 

Bus. 4-Party 2.25 Res. 4-Party 1.50 

Bus. Rural 2.00 Res. Rural 1.50 

Semi-Public Telephone Service — Daily Guarantee of Revenue from 
Local Messages, lie. 

In view of the petition of the Apex subscribers and the action of 
the town council of Apex, and recognizing that the improved service 
will require a considerable expenditure of money, and taking into 
further consideration that the proposed rates are in line with the rates 
of comparable exchanges in the State, it is therefore 

Ordered that authority is hereby granted to the Southern Bell 
Telephone and Telegraph Company to convert its exchange at Apex 
from the present magneto type to an automatic system, and when the 
said new system is put into service the rates, agreed upon by the town 
council as set forth herein, shall become effective. 

This 22nd day of March, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1249. 



Decisions and Adjustments of Complaints 349 

APPLICATION OF THE BOARD OF ALDERMEN OF THE TOWN 
OF CAROLINA BEACH, NORTH CAROLINA, FOR INSTALLA- 
TION OF TELEPHONE EXCHANGE IN SAID TOWN. 

Order 
This matter comes before the Commission upon an application of 
the Board of Aldermen, of Carolina Beach, North Carolina, supported 
by resolution passed by said Board on the 7th day of December, 1937, 
and certified to this Commission by R. C. Fergus, Mayor, and George 
W. Goodson, Clerk, asking that the Southern Bell Telephone and 
Telegraph Company be authorized to abandon its present method of 
furnishing telephone service to the town of Carolina Beach and adja- 
cent territory, and to construct in lieu thereof a modern telephone 
exchange of the latest type and design, known to the Telephone Com- 
pany as Community Dial Equipment; and the said resolution further 
sets forth that, in consideration of the expense to the said Southern 
Bell Telephone and Telegraph Company in establishing an exchange 
it is agreeable to the subscribers in said town that the schedule of 
rates for local exchange service as hereinafter set out and upon the 
application of established interexchange message toll charges, said 
schedule of rates for local exchange service to become effective upon 
the completion of the proposed exchange, to which the Town agrees, 
are as follows: 

Business 1-Party $3.50 Residence 1-Party $2.25 

Business 2-Party 3.00 Residence 2-Party 1.75 

Business 4-Party 2.50 Residence 4-Party 1.50 

Business Rural 2.25 Residence Rural 1.50 

Seasonal Service 

First Month — 3 times regular monthly rates 

Second Month — 2 times regular monthly rates 

Third Month — 1 times regular monthly rates. 

Service Connection Charges as provided in the Telephone Com- 
pany's General Exchange Tariff for North Carolina on file with the 
North Carolina Utilities Commission. 

And it further appearing that the Southern Bell Telephone and 
Telegraph Company is agreeable to the establishment of an exchange, 
as hereinbefore set out, upon the condition that the schedule of rates 
for local exchange service and the application of established inter- 
exchange message toll charges become effective following the comple- 
tion of said exchange and the furnishing of service therefrom." 

It is now, therefore, ordered, that the Southern Bell Telephone 
and Telegraph Company be and is hereby authorized and directed to 
abandon its present method of furnishing telephone service to the 
Town of Carolina Beach and adjacent territory and to construct a 
modern telephone exchange, known as Community Dial Equipment, 
and upon the completion of said exchange to charge for its service 
the rates hereinbefore stated. 

This the 15th day of December, 1937. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
Docket No. 1171. 



350 N. C. Utilities Commission 

PETITION OF SOUTHERN BELL TELEPHONE AND TELEGRAPH 
COMPANY FOR AUTHORITY TO CHANGE EXCHANGE AT 
CARY TO AUTOMATIC SYSTEM. 

Order 
This matter comes before the Commission upon a petition of the 
Southern Bell Telephone and Telegraph Company asking that it be 
permitted to comply with the petition of its business and residential 
subscribers at its Cary Exchange asking that the exchange there be 
converted from the present magneto type to an automatic system. In 
this petition of said subscribers the town council of Cary joins and sets 
forth that it recognizes that the installation of the system will require 
a considerable expenditure of money not justified by the schedule of 
rates now in effect, and upon installation and operation of the auto- 
matic system, it deems the following schedule of rates fair and equita- 
ble and these rates set forth below are given its official endorsement 
and approval: 

Bus. Ind. Line $3.25 Res. Ind. Line $2.00 

Bus. 2-Party 2.75 Res. 2-Party 1.75 

Bus. 4-Party 2.25 Res. 4-Party 1.50 

Bus. Rural 2.00 Res. Rural 1.50 

(Semi-Public Telephone Service — Daily Guarantee of revenue 
from local messages — lie.) 

In view of the petition of the Cary subscribers and the action of 
the town council of Cary, and recognizing that the improved service 
will require a considerable expenditure of money, and taking into 
further consideration that the proposed rates are in line with the rates 
of comparable exchanges in the State, it is therefore 

Ordered, That authority is hereby granted to the Southern Bell 
Telephone and Telegraph Company to convert its exchange at Cary 
from the present magneto type to an automatic system, and when the 
said system is put into service the rates, agreed upon by the town 
council as set forth herein, shall become effective. 

This the 24th day of May, 1938. 

By order of the Commission: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 1306. 

INSTALLATION OF AUTOMATIC COMMUNITY DIAL EQUIPMENT 
IN LIEU OF PRESENT MAGNETO SYSTEM IN THE SOUTHERN 
BELL TELEPHONE AND TELEGRAPH COMPANY EXCHANGE 
IN THE TOWN OF DAVIDSON, NORTH CAROLINA. 

Order 
This matter coming before the Commission upon petition of 
approximately 90% of the telephone subscribers in the town of David- 
son, North Carolina, and also upon a resolution passed by the Board of 
Aldermen of said town and certified to this Commission by T. M. 
Griffith, Mayor, attested by C. A. Potts, Clerk, in which petition and 
resolution this Commission is requested to order the Southern Bell 



Decisions and Adjustments of Complaints 351 

Telephone & Telegraph Company to replace the present magneto 
system in said town with a modern telephone system of the latest type 
and design known as the Community Dial Equipment. The said peti- 
tioners and Board of Aldermen, in consideration of the cost and 
expense of making the conversion in said systems, agree to an increase 
in rental charges, as follows: 

Bus. 1-Party Line $3.50 Res. 1-Party Line $2.25 

Bus. 2-Party Line 3.00 Res. 2-Party Line 2.00 

Bus. 4-Party Line 2.50 Res. 4-Party Line 1.50 

Bus. Rural Line 2.25 Res. Rural Line 1.50 

It further appearing that the Southern Bell Tel. & Tel. Co. is willing 
to install the Automatic Community Dial Equipment, if the above 
schedule of rates are approved, and this Commission having considered 
said rates and finding that they are reasonable and fair and identical 
with others which the Commission has approved under similar circum- 
stances for comparable exchanges, 

It is, therefore, ordered, that the Southern Bell Tel. & Tel. Co. is 
hereby authorized and directed to replace the present magneto tele- 
phone system in the town of Davidson, North Carolina, with a modern 
telephone system of the latest type and design known to the telephone 
company as Community Dial Equipment, and when said conversion 
has been completed to charge for the new service the rates herein- 
before set out. 

This the 10th day of December, 1937. 

(Signed) Stanley Winborne, 

Docket No. 1169. Utilities Commissioner. 

PETITION OF SOUTHERN BELL TELEPHONE AND TELEGRAPH 
COMPANY FOR AUTHORITY TO CHANGE EXCHANGE AT 
FAIRMONT TO AUTOMATIC SYSTEM. 

Order 
This matter comes before the Commission upon a petition of the 
Southern Bell Telephone and Telegraph Company asking that it be 
permitted to comply with a petition of its business subscribers at its 
Fairmont Exchange asking that the exchange there be converted from 
the present magneto type to an automatic system. In this petition of 
said subscribers the town council of Fairmont joins and sets forth that 
it recognizes that the installation of the new system will require a 
considerable expenditure of money not justified by the schedule of 
rates now in effect, and upon installation and operation of the auto- 
matic system, it deems the following schedule of rates fair and equita- 
ble and these rates set forth below are given its official endorsement 
and approval: 

Bus. Ind. Line $3.25 Res. Ind. Line $2.00 

Bus. 2-Party 2.75 Res. 2-Party 1.75 

Bus. 4-Party 2.25 Res. 4-Party 1.50 

Bus. Rural 2.00 Res. Rural 1.50 

In view of the petition of the Fairmont subscribers and the action 
of the town council of Fairmont, and recognizing thta the improved 



352 N. C. Utilities Commission 

service will require a considerable expenditure of money, and taking 
into further consideration that the proposed rates are in line with the 
rates of comparable exchanges in the State, it is therefore 

Ordered, That authority is hereby granted to the Southern Bell 
Telephone and Telegraph Company to convert its exchange at Fair- 
mont from the present magneto type to an automatic system, and 
when the said new system is put into service the rates, agreed upon 
by the town council as set forth herein, shall become effective. 

By order of the Commission: (Signed) Stanley Winborne, 

(Signed) R. O. Self, Chief Clerk. Utilities Commissioner. 

Raleigh, N. C, March 5, 1937. 

Docket No. 959. 

PETITION OF TELEPHONE SUBSCRIBERS OF MAIDEN, NORTH 
CAROLINA, TO THE SOUTHERN BELL TELEPHONE AND TELE- 
GRAPH COMPANY AND THE NORTH CAROLINA UTILITIES 
COMMISSION FOR THE CONVERSION OF THE TELEPHONE 
EXCHANGE IN THE TOWN OF MAIDEN, NORTH CAROLINA, 
FROM MAGNETO TO COMMUNITY DIAL EQUIPMENT, AND 
FOR ADJUSTMENT OF RATES THEREON. 

Order 
This petition was presented by a delegation of citizens from Maiden, 
North Carolina, setting forth that they desire more modern telephone 
service in that town, and to that end they have decided to ask the 
Southern Bell Telephone and Telegraph Company, with the cooperation 
of the Commission, to substitute the present facilities with a com- 
munity dial system; and as an inducement to the Southern Bell Tele- 
phone and Telegraph Company to incur the necessary additional 
expense, all of the present and prospective subscribers to the said 
telephone service in the Town of Maiden, and neighborhood, have 
agreed to the following rates, when and if the improvements are made 
and completed: 

Bus. 1-Party $3.25 Res. 1-Party $2.00 

Bus. 2-Party 2.75 Res. 2-Party 1.75 

Bus. Rural 2.00 Res. Rural 1.50 

Therefore, in consideration of the above agreement by the citizens, 
subscribers and prospective subscribers, the proposal for the telephone 
company to bear the expense necessary, the improvement is hereby 
approved and the telephone company is authorized to take such action 
at its convenience, and when the improvement is completed it shall 
report to this Commission the effective date of the rates hereinbefore 
agreed to. Therefore, it is 

Ordered that the petition be granted. 

This July 6, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 1046. 



Decisions and Adjustments of Complaints 353 

APPLICATION OF THE TOWN OF MURPHY, NORTH CAROLINA, 
AND ITS TELEPHONE SUBSCRIBERS FOR IMPROVEMENT IN 
CENTRAL OFFICE EQUIPMENT AND TELEPHONE SERVICE. 

Order 

This matter comes before the Commission upon a petition signed 
by a large majority of the telephone subscribers of Murphy, North 
Carolina, asking that the Southern Bell Telephone and Telegraph 
Company be required to replace the present magneto system in said 
town with an up-to-date common battery system. The petition of the 
subscribers is supported by a formal resolution passed by the govern- 
ing body of said town and duly certified to this Commission by Mr. 
C. D. Mayfield, Mayor Pro Tem, and Mr. E. O. Christopher, Clerk. 

This matter has been the subject of correspondence between this 
Commission and representatives of the Town of Murphy and also 
between this Commission and the Southern Bell Tel. & Tel. Co. prior 
to the filing of the petition. A full discussion has been entered into 
concerning the cost of the proposed change and the proper rates to be 
charged after the change has been made. The officials of the Town of 
Murphy and also the telephone subscribers who have signed the 
petition recognize that the change in equipment will require the 
expenditure of a considerable amount of money and that the present 
schedule of exchange rates would not justify the expenditure. Where- 
upon, it has been agreed by all parties, and approved by the Commis- 
sion, that the Southern Bell Tel. & Tel. Co. will change the present 
magneto system to common battery equipment, and after said change 
has been made that the following rates shall become the approved 
rental rates for the service: 

Business Ind. Line $3.50 Residence Ind. Line $2.25 

Business 2-Party 3.00 Residence 2-Party 2.00 

Business 4-Party 2.50 Residence 4-Party 1.50 

Business Rural 2.25 Residence Rural 1.50 

It has been further agreed between this Commission and the 
Southern Bell Tel. & Tel. Co. that the Southern Bell Tel. & Tel. Co. 
will proceed as rapidly as possible to make the change in equipment, 
and when same has been completed, shall give due notice to this 
Commission. 

Wherefore, it is hereby ordered, that the Southern Bell Tel. & 
Tel. Co. is authorized and directed to make such expenditure as is 
reasonably necessary to replace the present magneto exchange system 
within the Town of Murphy, North Carolina, with a common battery 
system, and after said replacement has been made to charge for the 
service the rental rates hereinbefore set out. 

This the 3rd day of February, 1938. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
Docket No. 1208. 



354 N. C. Utilities Commission 

RE: ESTABLISHMENT OF SOUTHERN BELL TELEPHONE AND 
TELEGRAPH COMPANY EXCHANGE IN THE TOWN OF PEM- 
BROKE, NORTH CAROLINA. 

Order 
It having been made to appear to this Commission by resolution 
unanimously adopted by the Town Council of Pembroke, North Caro- 
lina, dated February 4th, 1937, and certified to this Commission by 
G. E. Bracey, Mayor, and J. L. Thagard, Clerk, and also by a petition 
signed by sixty-two of the residents of the Town of Pembroke, ad- 
dressed to this Commission, that the Town of Pembroke is without 
adequate telephone facilities, and that the Southern Bell Telephone 
and Telegraph Company has agreed to construct in the Town of Pem- 
broke a modern telephone exchange of the latest type and design, 
known to the Telephone Company as No. CX-100 community dial 
equipment, provided this Commission will approve the schedule of 
monthly rates for an unlimited exchange service as follows: 

Bus. Ind. Line $3.50 Res. Ind. Line $2.25 

Bus. 2-Party 3.00 Res. 2-Party 1.75 

Bus. Rural 2.25 Res. Rural 1.50 

It further appearing in both said resolution and said petition that 
it is recognized by the Town Council and the sixty-two signers of said 
petition, that the construction of the exchange will require the expen- 
diture of a considerable amount of money and that the minimum 
investment in the plant necessary to establish a new exchange can be 
justified only by the rates aforesaid, and that it is the sense of the 
council and also the petitioners that the schedule of rates herein set 
out is fair and equitable and have been approved and endorsed both 
by the Town Council and the petitioners, 

Wherefore, it is ordered that the Southern Bell Telephone and 
Telegraph Company proceed immediately to construct the telephone 
exchange in the Town of Pembroke and when service is available to 
charge for same the rates hereinbefore set out. 

This the 11th day of February, 1937. 

(Signed) Stanley Winborne, 

Commissioner. 
Docket No. 945. 

PETITION OF THE CAROLINA TELEPHONE & TELEGRAPH COM- 
PANY FOR AUTHORITY TO BUILD AN AUTOMATIC 
EXCHANGE AT ROSEBORO, N. C, AND ESTABLISH RATES 
THEREUPON. 

Order 
This cause arises upon the petition of the Carolina Telephone & 
Telegraph Company for authority to build an automatic telephone 
exchange in the town of Roseboro and establish rates thereon. The 
petition was filed on October 22, 1936, supported by a resolution passed 
by the Mayor and Board of Aldermen of the town of Roseboro, con- 
senting to the proposal to build the said automatic exchange and 



Decisions and Adjustments of Complaints 355 

outlining in the said resolution the rates agreed to between the com- 
pany and the town officials. 

This petition was presented along with several others and was 
part of the plan of the petitioner to extend and improve its service 
over the territory served by it. General authority was granted by 
the Commission which would enable the petitioner to finance itself 
so as to acquire the automatic equipment necessary to complete the 
proposed work. We are now advised that the exchange has been 
completed and the outside distribution lines rebuilt and that the 
company is ready to cut in the exchange, effective May 1, 1937. 

Therefore, it is ordered that the rates approved by the Mayor 
and Board of Aldermen are hereby approved and promulgated as the 
rates to be charged within the base rate area on this exchange, as 
follows : 

Business, Individual Line $3.25 per month 

Business, Two-party Line $2.75 per month 

Residence, Individual Line $2.00 per month 

Residence, Two-party Line $1.50 per month 

It is further ordered that if the said exchange is not ready for 
use on the said date of May 1st, the rates above-named shall be effec- 
tive when the exchange is ready for use and the petitioner shall notify 
the Commission of the effective date. 

This the 29th day of April, 1937. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 866. 

PETITION OF SOUTHERN BELL TELEPHONE AND TELEGRAPH 
COMPANY FOR AUTHORITY TO CHANGE EXCHANGE AT 
SOUTHPORT TO AUTOMATIC SYSTEM. 

Order 
This matter comes before the Commission upon a petition of the 
Southern Bell Telephone and Telegraph Company asking that it be 
permitted to comply with a petition of a majority of its business and 
residence subscribers at its Southport Exchange asking that the ex- 
change there be converted from the present magneto type to an auto- 
matic system. In this petition of said subscribers the town council of 
Southport joins and sets forth that it recognizes that the installation 
of the new system will require a considerable expenditure of money 
not justified by the schedule of rates now in effect, and upon installa- 
tion and operation of the automatic system, it deems the following 
schedule of rates fair and equitable and these rates set forth below 
are given its official endorsement and approval : 

Bus. Ind. Line $3.25 Res. Ind. Line $2.00 

Bus. 2-Party 2.75 Res. 2-Party 1.75 

Bus. 4-Party 2.25 Res. 4-Party 1.50 

Bus. Rural 2.00 Res. Rural 1.50 

Semi-public telephone service — Daily guarantee of revenue from 
local messages — lie. 



356 N. C. Utilities Commission 

In view of the petition of the Southport subscribers and the action 
of the town council of Southport, and recognizing that the improved 
service will require a considerable expenditure of money, and taking 
into further consideration that the proposed rates are in line with 
the rates of comparable exchanges in the State, it is therefore 

Ordered, That authority is hereby granted to the Southern Bell 
Telephone and Telegraph Company to convert its exchange at South- 
port from the present magneto type to an automatic system, and when 
the said new system is put into service, the rates agreed upon by the 
town council, as set forth herein, shall become effective. 

Raleigh, N. C, July 25, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 1359. 

PETITION OF TELEPHONE SUBSCRIBERS OF STONY POINT, 
NORTH CAROLINA, TO THE SOUTHERN BELL TELEPHONE 
AND TELEGRAPH COMPANY AND THE NORTH CAROLINA 
UTILITIES COMMISSION FOR THE CONVERSION OF THE 
TELEPHONE EXCHANGE IN STONY POINT, NORTH CAROLINA, 
FROM MAGNETO TO COMMUNITY DIAL EQUIPMENT. 

Order 
This matter comes before the Utilities Commission, upon a petition 
addressed to the Southern Bell Telephone and Telegraph Company and 
the North Carolina Utilities Commission by the telephone subscribers 
of Stony Point, North Carolina, asking that the present magneto 
system be replaced by "a modern telephone system of the latest type 
and design, known to the Telephone Company as community Dial 
equipment." 

In consideration of the expenditure necessary to install the dial 
equipment, an increase in the monthly rental charges is agreed to by 
the subscribers, and the rates to be charged when the dial system is 
completed are as follows: 

Business 1-Party $3.00 Residential 1-Party $2.00 

Business 2-Party 2.75 Residential 2-Party 1.75 

Business 4-Party 2.25 Residential 4-Party 1.50 

Business Rural 2.00 Residenctial Rural 1.50 

The Southern Bell Telephone and Telegraph Company has signified 
its willingness to replace the present magneto system with the dial 
system and charge thereafter for the service the rates set forth in 
the petition. 

Wherefore, it is ordered, that the Southern Bell Tel. & Tel. Com- 
pany is hereby authorized and directed to replace its magneto type 
telephone exchange in the Town of Stony Point and install in its stead 
a dial exchange system, and when such installation has been completed 



Decisions and Adjustments of Complaints 357 

to charge the rates hereinbefore set out and notify this Commission 
when said rates become effective. 

This the 17th day of September, 1937. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
Docket No. 1096. 

PETITION OF TELEPHONE SUBSCRIBERS OF TROUTMAN, 
NORTH CAROLINA, TO THE SOUTHERN BELL TELEPHONE 
AND TELEGRAPH COMPANY AND THE NORTH CAROLINA 
UTILITIES COMMISSION FOR THE CONVERSION OF THE 
TELEPHONE EXCHANGE IN THE TOWN OF TROUTMAN, 
NORTH CAROLINA, FROM MAGNETO TO COMMUNITY DIAL 
EQUIPMENT. 

Order 

This matter comes before the Utilities Commission, upon a petition 
addressed to the Southern Bell Telephone and Telegraph Company 
and the North Carolina Utilities Commission by the telephone sub- 
scribers of Troutman, North Carolina, asking that the present magneto 
system be replaced by "a modern telephone system of the latest type 
and design, known to the Telephone Company as community dial 
equipment." 

Accompanying said petition is a resolution passed by the Town 
Council on the 23rd day of August, 1937, and certified by Mr. Tom 
Neill, Mayor, and Mr. C. A. Litten, Clerk, in which it is stated that, 
in consideration of the expenditure necessary to install the dial equip- 
ment, an increase in the monthly rental charges is approved and the 
rates to be charged when the dial system is completed are as follows: 

Business 1-Party $3.25 Residential 1-Party $2.00 

Business 2-Party 2.75 Residential 2-Party 1.75 

Business 4-Party 2.25 Residential 4-Party 1.50 

Business Rural 2.00 Residential Rural 1.50 

The same rates are approved in the petition of the subscribers. 

The Southern Bell Tel. & Tel. Co. has signified its willingness to 
replace the present magneto system with the dial system and charge 
thereafter for the service the rates set forth in the petition and in the 
resolution of the Town Council. 

Wherefore, it is ordered, that the Southern Bell Tel. & Tel. Co. is 
hereby authorized and directed to replace its magneto type telephone 
exchange in the Town of Troutman and install in its stead a dial 
exchange system, and when such installation has been completed to 
charge the rates hereinbefore set out, and notify this Commission when 
said rates become effective. 

This the 17th day of September, 1937. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
Docket No. 1097. 



358 N. C. Utilities Commission 

PETITION OF SOUTHERN BELL TELEPHONE AND TELEGRAPH 
COMPANY FOR AUTHORITY TO CHANGE EXCHANGE AT 
WENDELL TO AUTOMATIC SYSTEM. 

Order 
This matter comes before the Commission upon a petition of the 
Southern Bell Telephone and Telegraph Company asking that it be 
permitted to comply with a petition of its business subscribers at its 
Wendell Exchange, asking that the exchange there be converted from 
the present magneto type to an automatic system. In this petition of 
said subscribers the town council of Wendell joins and sets forth that 
it recognizes that the installation of the new system will require a 
considerable expenditure of money not justified by the schedule of 
rates now in effect, and upon installation and operation of the auto- 
matic system, it deems the following schedule of rates fair and equita- 
ble and these rates set forth below are given its official endorsement 
and approval: 

Bus. Ind. Line $3.25 Res. Ind. Line $2.00 

Bus. 2-Party 2.75 Res. 2-Party 1.75 

Bus. 4-Party 2.25 Res. 4-Party 1.50 

Bus. Rural 2.00 Res. Rural 1.50 

Semi-Public Telephone Service — Daily Guarantee of revenue from 
local messages, lie. 

In view of the petition of the Wendell subscribers and the action 
of the town council of Wendell, and recognizing that the improved 
service will require a considerable expenditure of money, and taking 
into further consideration that the proposed rates are in line with the 
rates of comparable exchanges in the State, it is therefore 

Ordered that authority is hereby granted to the Southern Bell 
Telephone and Telegraph Company to convert its exchange at Wendell 
from the present magneto type to an automatic system, and when the 
said new system is put into service the rates, agreed upon by the town 
council as set forth herein, shall become effective. 

This 12th day of March, 1938. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 1236. 

Albemarle Telephone Company. B. A. Simpson vs. Complaint of 
Rates. Dismissed. Docket No. 965. 

Carolina Telephone and Telegraph Company to the Commission. 
Approval of hand set and jack and plug charges. Docket No. 1175. 

Carolina Telephone and Telegraph Company to the Commission. 
Approval of revised sheet in re advance payments and deposits. Docket 
No. 1333. 

Carolina Telephone and Telegraph Company to the Commission. 
Multi-party rates for Atlantic Beach, quoted in local exchange tariff 
for Morehead City. Approved. Docket No. 1284. 



Decisions and Adjustments of Complaints 359 

Carolina Telephone and Telegraph Company to the Commission. 
Rates for Engelhard. Approved. Docket No. 1194. 

Carolina Telephone and Telegraph Company to the Commission. 
Application for authority to convert exchange at Garland to dial ex- 
change service, serving Parkershurg out of Garland, and eliminating 
service at Mints. Approved. Docket No. 1387. 

Carolina Telephone and Telegraph Company to the Commission. 
Application for authority to install exchange at Halifax and establish 
rates. Approved. Docket No. 1402. 

Carolina Telephone and Telegraph Company to the Commission. 
Rates for Swan Quarter. Approved. Docket No. 1194. 

Carolina Telephone and Telegraph Company. L. M. Bryan, English 
Tavern. Installation of telephone. Adjusted. Docket No. 1250. 

Carolina Telephone and Telegraph Company. W. B. Cooper. Com- 
plaint of rates between Hampstead and Wilmington. Adjusted. Docket 
No. 1287. 

Carolina Telephone and Telegraph Company. Dr. A. H. Fleming. 
Complaint of service connection charge at Fair Ground. Adjusted. 
Docket No. 1140. 

Carolina Telephone and Telegraph Company. Complaint by 
Charles A. Flynn, et al, Washington, N. C, of increase in rate. Dis- 
missed. Docket No. 748. 

Carolina Telephone and Telegraph Company. Complaint by Lilling- 
ton Stone Company of failure to get service. Dismissed. Docket No. 
1345. 

Carolina Telephone and Telegraph Company. Complaint by P. T. 
Neathery of failure to get telephone installed. Adjusted. Docket No. 
1320. ' 

Carolina Telephone and Telegraph Company. J. W. Saunders, 
County Agent. Installation of telephone. Adjusted. Docket No. 1129. 

Carolina Telephone and Telegraph Company. S. H. Spencer. In- 
stallation of telephone. Adjusted. Docket No. 949. 

Carolina Telephone and Telegraph Company. H. F. Van Straaten. 
Complaint of charge for hand set for Mrs. V. S. Bryant. Adjusted. 
Docket No. 1157. 

Carolina Telephone and Telegraph Company. J. A. Whitaker. In- 
stallation of service. Adjusted. Docket No. 947. 

Carolina Telephone and Telegraph Company. Wooten's Hometel, 
Wake Forest. Complaint of service. Adjusted. Docket No. 1188. 

Casolina Utilities, Incorporated, to Morris Telephone Company. 
Contract providing for sale of exchange in Caswell County to Morris 
Telephone Company. Approved. Docket No. 1182. 

Central Carolina Telephone Company to the Commission. Service 
connection charges filed and approved. Docket No. 1434. 

Central Electric and Telephone Company to the Commission. 
Rates for Candor, Mount Gilead, and Troy. Approved. Docket No. 
1003. 



360 N. C. Utilities Commission 

Central Electric and Telephone Company. Complaint of service by 
P. W. Weshelman. Adjusted. Docket No. 948. 

Central Electric and Telephone Company. Complaint by H. P. 
Graham of extra charge for French type telephones. Adjusted. Docket 
No. 939. 

Central Electric and Telephone Company. Complaint by Dr. R. 
G. Rogers and G. M. Chappell, Creedmoor, of discrimination in 
rates. Adjusted. Docket No. 1260. 

Central Electric and Telephone Company. Complaint by L. S. 
Weaver, Jonesville, of charge for installation of telephone. Adjusted. 
Docket No. 1123. 

Citizens Telephone Company. Complaint by P. N. Simons, Brevard, 
of charge for labor, trip and fuses used in upkeep of telephone. Dis- 
missed. Docket No. 1079. 

Clark Brothers Telephone Line. Complaint by F. C. Yarborough 
of